The Central Bank of Nicaragua published its April 2025 Indicators for the Banking System and Finance Companies (SBF), reporting continued solid performance with growing public deposits and credit, adequate liquidity and solvency, and improved profitability. Year to date, the SBF funded asset growth mainly through higher obligations to the public (NIO 14,888.2 million) and increased equity from retained earnings (NIO 2,244.0 million), allocated primarily to higher investments (NIO 8,832.4 million) and credit disbursements (NIO 6,240.2 million), alongside a reduction in obligations to financial institutions (NIO 2,856.1 million). Public deposits rose 9.8% year on year to NIO 253,854.8 million and the credit portfolio increased 16.0% to NIO 218,765.7 million. Portfolio quality remained stable, with performing loans at 95.1% of gross and the non-performing loan ratio at 1.4% (1.5% in April 2024). Liquidity, measured as cash and cash equivalents over public deposits, was 35.3%, while the biweekly legal reserve requirement showed overcompliance in both local and foreign currency, with end-month effective rates of 15.9% and 15.5% respectively. The SBF reported ROE of 13.7% (12.1% in April 2024), ROA of 2.4% (2.1%), and a capital adequacy ratio of 18.4% (18.9%), above the 10% legal minimum.
Central Bank of Nicaragua 2025-06-03
Central Bank of Nicaragua publishes April 2025 banking system indicators showing 9.8% deposit growth and 16.0% credit expansion
The Central Bank of Nicaragua's April 2025 Indicators report robust performance in the banking system with increased public deposits and credit, adequate liquidity, and improved profitability. Public deposits rose 9.8% year-on-year to NIO 253,854.8 million, while the credit portfolio grew 16.0% to NIO 218,765.7 million. The sector maintained stable loan portfolio quality, with a non-performing loan ratio of 1.4%, and reported a return on equity of 13.7% and a capital adequacy ratio of 18.4%, exceeding the 10% legal minimum.