Banco Agricola S.A

Solid business position in El Salvador banking industry Large and stable core deposit base Diversification in product business lines Profitability metrics pressured by increasing industry competition Low economic growth prospects for the country The stable outlook over the next 12-24 months on Banco Agricola reflects that on the sovereign. We expect the bank's SACP to keep benefitting from Banco Agricola's leading position in El Salvador's banking sector NPAs at 1.8% NPAs and charge-offs at 1.2%. We also estimate that the bank's RAC ratio will remain under the adequate category (about 8%) and its profitability higher than the sector's in the next 12-18 months. El Salvador's sovereign ratings continue limiting those on Banco Agricola; therefore, a positive rating action on the

...Low economic growth prospects for the country Outlook: Stable The stable outlook over the next 12-24 months on Banco Agricola reflects that on the sovereign. We expect the bank's SACP to keep benefitting from Banco Agricola's leading position in El Salvador's banking sector NPAs at 1.8% NPAs and charge-offs at 1.2%. We also estimate that the bank's RAC ratio will remain under the adequate category (about 8%) and its profitability higher than the sector's in the next 12-18 months. El Salvador's sovereign ratings continue limiting those on Banco Agricola; therefore, a positive rating action on the sovereign will lead to an upgrade of the bank if its SACP remains above the long-term sovereign rating. Likewise, negative rating action on the sovereign will also prompt the same rating action on Banco Agricola....

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