Banks buoyant in surging Dominican Republic
Consolidation and new entrants attracted to the country’s winning GDP streak.
The rapid growth of the Dominican Republic economy in recent years has led to strong credit growth, changing market dynamics, and is attracting new entrants.
The IMF predicts a 5% increase in GDP this year, slightly down from 2018’s 7.0%, but still leading the region.
If next year’s forecast of a further 5% materializes – and with a presidential election, there is risk of volatility – it would see a record-setting 17 years of consecutive positive growth.
The growth in the economy is corresponding to record results for the banks. In 2018, state-owned Banreservas – the country’s largest bank, with a 32% market share in terms of assets – made $142.3 million in net profit, its best result.
Speaking at the Felaban conference in Miami in November, Roberto Jiménez, the bank’s senior director of specialized business, told Euromoney that Banreservas had already generated more net income in the first 10 months of 2019.
Despite being a publicly owned organization, the bank has transformed itself in recent years into being focused on the private sector.