Banco Industrial S.A.

Our stable outlook on Banco Industrial for the next 12 months mirrors that on Guatemala (foreign currency: BB-/Stable/B), which constrains our rating on the bank. The outlook also incorporates our opinion that the economic recovery will continue increasing Banco Industrial's already solid market presence and large deposit base. We believe Banco Industrial will keep its sound operating performance and healthier asset quality metrics than the Guatemalan system average. We could lower the ratings on Banco Industrial in the next 12 months if we take a similar action on Guatemala, which could occur if the expected contraction in economy and widening government fiscal deficit amid the pandemic lead to persistently weak public finances. An upgrade of Banco Industrial would require an

...We expect Banco Industrial's loans origination to continue recovering this year, which coupled with a slowdown of its provisioning, will lead to steady profitability. We believe Banco Industrial's broad presence in Guatemala's corporate and retail lending segments will enable the bank to remain the largest player in terms of assets and deposits in the country. In our view, the bank will grow at a steady levels during the next two years, which along with lower provisions, will translate into more stable profitability than those of other banks in the region. We believe Banco Industrial's business stability will support the portfolio growth while it remains resilient to the increasing post-pandemic challenges. We believe broad presence and recognized brand will enable the bank to boost its lending, while it withstands a potential deterioration of some borrowers in the next few years. Additionally, Banco Industrial built enough provisions in 2020-2021 to prepare for the potential erosion of...

Full Report