Banco Industrial S.A.

Overview Key strengths Key risks The largest bank in Guatemala with leading market share in terms of loans and deposits. Potential pressures on asset quality due to growth in retail loan book. Financial flexibility due to funding that relies heavily on a large and stable deposit base. Higher foreign-currency loan exposure than the Guatemalan banking system average. We think BI's leading market position and stable deposit funding structure will continue providing business stability and financial resilience. These strengths, along with its recent digital investments, will continue to broaden its market share and business diversification. Recently, the bank has focused on expanding its retail lending to raise its net interest margins (NIMs), and ultimately, its profitability indicators. Even though this has

...We expect Banco Industrial (BI) to continue generating stable operating revenue, while it increases its market presence in Guatemala. We think BI's leading market position and stable deposit funding structure will continue providing business stability and financial resilience. These strengths, along with its recent digital investments, will continue to broaden its market share and business diversification. We project asset quality metrics to continue deteriorating due to growth in retail lending. Recently, the bank has focused on expanding its retail lending to raise its net interest margins (NIMs), and ultimately, its profitability indicators. Even though this has benefited the bank's bottom-line results, we expect asset quality metrics to continue weakening. Still, we believe the bank's significant exposure to large Guatemalan corporations with solid payment capacity,...

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