The Panamanian banking system concluded 2025 with robust growth in deposits and credit, according to official year-end figures released this week. The Superintendency of Banks of Panama presented the financial results for the nation’s International Banking Center on Wednesday, February 25. The data shows a sector expanding in line with the broader economy, though driven increasingly by international financial flows.
Total deposits managed by banks reached $116.81 billion by December 2025. This marked a significant increase of 5.72 percent, or an additional $6.32 billion, compared to the previous year. The credit portfolio, a key indicator of economic activity, grew by 5 percent to reach $100 billion. Banking profits for the year totaled $3 billion, reflecting a 2 percent annual increase.
Javier Motta from the Superintendency of Banks led the presentation of the comprehensive year-end report. He provided context for the figures, noting their alignment with national economic performance and global conditions. “Although the proportion of deposits maintains a greater local weight, it continues to be the external part that is driving the growth,” Motta stated during the briefing. [Translated from Spanish] This pattern of external leadership was observed across several balance sheet components.
The immediate impact of these figures points to sustained stability within Panama’s crucial financial services sector. The growth in both deposits and credit suggests continued confidence from both domestic and international clients. Analysts view the banking sector’s health as a critical bellwether for the country’s overall economic trajectory.
International Deposits Fuel Overall Growth
A deeper analysis reveals the engine behind the deposit growth. External deposits, funds originating from outside Panama, surged by 11 percent over the year. They climbed from $41.93 billion to $46.57 billion, an increase of $4.64 billion. Domestic deposits from Panamanian individuals, companies, and the government saw a more modest rise of 2.46 percent, reaching $70.24 billion.
This trend is not a one-year anomaly. Officials noted that international captations have grown at an average annual rate of 9 percent over the last five years. The domestic plaza, in contrast, has averaged 4 percent growth during the same period. The data underscores Panama’s enduring role as a regional International Banking Center.
Colombia remains the undisputed leader in sourcing external deposits, commanding 22 percent of that market. Political and economic conditions within Colombia have contributed to a sustained increase in the balances held by its clients in Panamanian banks. Costa Rica surprisingly captured the second position, a spot it does not typically hold. This shift resulted from a specific, large-scale corporate financing deal that used a fixed-term deposit as collateral, temporarily boosting its numbers.
Credit Expansion Shows a Dual Speed
The net credit portfolio’s rise to $100 billion tells its own story. While the majority of the loan book remains domestic at 62 percent, the current growth is powered by external lending. The external credit portfolio is expanding at double-digit rates. Domestic credit growth was a mere 1 percent by December.
Within the local loan portfolio, interesting details emerged. New mortgage disbursements actually decreased by 1 percent. Analysts suggest ongoing legal uncertainty surrounding the preferential interest law at the time may have caused hesitation. Auto loans, however, performed exceptionally well. Their outstanding balances grew by 11.5 percent, with new credit in that category jumping 14.8 percent.
The quality of this [auto loan] portfolio is very good because people stop paying for the house and pay their car loan.
Motta expressed surprise at the resilience of auto loan repayments, highlighting a consumer priority. [Translated from Spanish] The data on household indebtedness showed Panamanians dedicate an average of 40 percent of their monthly income to debt payments. This remains within the internationally accepted parameter of up to 45 percent.
Profits Concentrated Among Largest Banks
The system’s net assets expanded by 4.23 percent year-over-year, reaching $163.01 billion. This growth of $6.62 billion is attributed to a management focus on strengthening productive assets like credit and investments. The environment across the region is characterized by high competition for liquidity.
The $3 billion in profits, while a record figure, revealed a slowing pace of earnings generation. The profit growth rate of 2 percent for 2025 was notably lower than the 8 percent increase recorded the previous year. Perhaps more striking is the high concentration of these earnings. Just sixteen banks, those with assets exceeding $3 billion each, generated 86 percent of the total profits.
More than thirty-five other banking entities in the system shared the remaining 14 percent of gains. This concentration highlights the competitive landscape within the Panamanian banking sector, where scale provides a significant advantage. The overall performance continues to support the financial sector’s substantial contribution to the nation’s Gross Domestic Product (GDP).
Officials will continue monitoring external factors, including regional political climates, for potential impacts on deposit stability. The steady performance of Venezuelan-derived deposits, which total around $3 billion, was noted as a positive sign after concerns were raised last year. The sector enters 2026 from a position of demonstrated strength, with its growth increasingly intertwined with international finance trends.