In 2020, the granting of loans by regulated financial entities in El Salvador maintained strong growth compared to the same period of the previous year, which meant that many micro, small and medium-sized companies were able to access fresh capital in the midst of the crisis. .
According to data from the Superintendency of the Financial System (SSF), the eleven supervised entities granted last year a total of $ 1,520 million, which is equivalent to a growth of 5.6% compared to 2019. In addition, assets increased by 10.4%, going from $ 2,051 million in 2019 to $ 2,266 million in 2020.
In the first place in the ranking of the country’s regulated non-bank financial institutions (IFNBR) in assets, credits and equity, the Federation of Credit Banks and Workers’ Banks (Fedecrédito) is again located with $ 581.2 million, $ 317.6 million and $ 111.5 million, respectively.
In addition, the Fedecrédito System (made up of 48 credit unions and 7 worker banks) obtained a 6.6% growth in its loan portfolio, closing the year with a balance of $ 2,330 million, assets grew 9.08% (closing 2020 with $ 3,188 million) and the collection of deposits experienced a growth of 18.1%.
Macario Armando Rosales, president and CEO of Fedecrédito, affirms that, despite the adverse context that the economic activity had in several months of 2020, the entity’s assets were driven by growth in the loan portfolio, new financial investments in securities of the Salvadoran State and high levels of liquidity by attracting deposits.
“The extraordinary of 2020 led us to rethink the goals set, taking into account the conditions experienced and the consequences of the most critical stage of the pandemic, after that, with the gradual economic reopening, an increase in loan businesses was observed. and deposits, obtaining favorable results at the end of the year “, affirms Rosales.
For 2021, the market share targets of 14% in loans, 12.25% in deposits and 19.5% in payment of family remittances have been set. In addition, they have planned an estimated investment of $ 20 million in the next three years in the process of digital transformation of the Fedecrédito System.
Another important actor of the Salvadoran IFNBR is the Sociedad de Ahorro y Crédito Credicomer. Edwin López, Finance and Treasury Manager, explains that, in the face of the pandemic, they refocused the work plan “seeking sustainability and management of portfolios”, according to the situation of the clients, they defined care policies by business or personal activity and the degree of affectation.
Thus, they managed to grow 14.9% in the loan portfolio, equivalent to $ 12 million, mostly generated in the last 4 months of the year. In addition, its assets reached $ 125.2 million, the gross loan portfolio without interest reached $ 92.1 million, the resources raised from the public reached $ 90.6 between savings, deposits and securities, and the equity reached $ 19.1 million.
–
“We have developed new lines of credit granting, for each of the sectors we serve, in support of micro, small and medium enterprises in the formal and informal sector, we have unsecured lines for injection of working capital and investments in productive assets according to the size and current state of the business, on the personal banking side we have reviewed the granting requirements and payment terms, applying debt consolidation plans and new investments, always maintaining the balance of risk-profitability, “says López.
Credicomer’s financial plan for 2021 includes an asset investment component aimed at strengthening and sustaining the provision of financial services, such as improving online banking and mobile banking, geolocation tools and making prospects for the capture of information, transactional security that facilitate the administration of the various product portfolios; that will require an investment of $ 550,000.
Importance
The representatives of both entities agree that they play a very important role for the Salvadoran economy, seeking financial inclusion and banking for the population.
For the Fedecrédito System, Rosales says that the main advantage they have is that “people are the center of the business model” and they seek to provide convenient financial solutions for the more than 1.2 million members.
“The covid-19 pandemic has generated a marked change in habits, to which due attention must be paid for the development of new products and services that respond to these new needs and trends,” emphasizes the manager.
In that sense, López de Credicomer adds that, although these financial companies have the advantage of “being agile and doing things differently from traditional banking,” the proper safeguarding of adequate levels of liquidity must also be taken into account to supply financial needs and being able to honor the funds of savers at all times, for this it is necessary to identify the possible losses of productive assets and the confirmation of the levels of reserves to cover them, in such a way that they do not impact the patrimonial relations.
“The 2021 agenda is aimed at maintaining productivity, commercial and operational efficiency that allow us to continue doing profitable business, make the projects that were developed during 2020 profitable and lay the foundations for more sustainable growth in future years. We hope to launch our media products payment, credit card and debit card, simplified savings account, and the interbank transfer service, “he said.
Good risk
The quality of the microfinance credit portfolio improved as of December 2020. The Portfolio at risk indicator greater than 30 days (CeR> 30) ended at 11.33%, reporting a quarterly reduction to 12% and an annual increase of 84.1%.
–
