LatinFinance - November/December 2017 - 46

this year.
BAC San José had $2.9 billion in assets
at the end of June this year, compared
to $2.5 billion a year earlier. The bank
also hiked investments by 19.4% to $1.5
billion, according to its latest financial
statements.
The lender holds just a 13% market
share in the country, but its sound
profitability and capitalization have
made it stand out in 2017 and win the
award for Bank of the Year in Costa Rica.
Banco Nacional de Costa Rica
(BNCR), for example, is heading in the
other direction. Costa Rica's largest
commercial bank recorded $41 million in
profits in the second quarter, down from
$51.5 million in the same period last year.
BAC San José has relied on the strength
of its Colombian parent company, Banco
de Bogotá, to grow its assets amid what
could be a tough economic time for Costa
Rica. Now, with a foothold in almost
every Central American country, BAC
San José is poised to expand its brand
throughout a region with many economic
bright spots. LF

BANK OF THE YEAR ECUADOR

PRODUBANCO

Ecuadorean bank tackles
the uncertainty of a new
administration, aiming to
grow net profits and roll
out two new credit card
initiatives
Ecuador's financial institutions were
exposed to likely volatility from the
presidential elections this year and faced
an uncertain first quarter. The second
quarter, however, followed with lofty
expectations, after President Lenín
Moreno won at the polls in March.
Produbanco enjoyed 16.9% overall
growth between June 2016 and this June ,
well ahead of the 14.7% industry average,
according to a report from Pacific Credit
Ratings. The bank also set aside concerns
of market instability and boosted profits
by 4.75% in the first quarter of 2017.
The winner of this year's Bank of
the Year: Ecuador accounted for 8.3%
of profits in the country's commercial

46 LATINFINANCE.COM - November/December 2017

RICARDO CUESTA, PRODUBANCO

"OUR GROWTH
STRATEGY IS MOTIVATED TO MAINTAIN
MARKET SHARE, AT A
MINIMUM"
banking sector, with net income nearly
doubling to $27.5 million by the end of
September from $14.3 million in June,
according to the bank's latest financial
statements.
"We have been able to increase our
market share because of our incremental
growth in other markets," says CEO
Ricardo Cuesta. Growth not only in Quito,
but also in other Ecuadorean cities such
as Guayaquil, Cuenca, Manta and Ambato
have put Produbanco on a more even
footing with last year's winner, Banco
Pichincha.
Cuesta also recorded an uptick in issuance
of credit cards and loans to small and
medium-sized enterprises. This year, in a bid
to penetrate the air travel sector, the bank
launched co-branded credit cards with the
Spanish airline Iberia and another with the
Panamanian carrier Copa Airlines.
Digital enhancements remain a
priority for Produbanco, and the bank
has upgraded its mobile applications
this year, which has increased customer
transactions by nearly 84% year-on-year,
Cuesta says.
"Our growth strategy is motivated to
maintain market share, at a minimum," he
says. With Produbanco's financials going
up, he adds, the bank remains fit to tackle
any changes to the government's fiscal
policy in 2018. LF

BANK OF THE YEAR EL SALVADOR

BANCO AGRÍCOLA

El Salvador's leading financial institution navigates a
tricky operating environment to register growth in
assets and loans
Although Fitch Ratings predicted in
January that El Salvador's banking sector

would face decreased interest margins
and rising consumer credit costs, Banco
Agrícola managed to record gains amid a
tough operating environment.
In the first six months of 2017, the bank
increased its total assets by 2.5% year-onyear to $4.1 billion, and expanded its loan
book to $2.96 billion, according to Banco
Agrícola's latest financial results.
With a leading 26% market share in the
country's banking sector, Banco Agrícola
is LatinFinance's Bank of the Year in El
Salvador.
The Bancolombia subsidiary edged
out Scotiabank El Salvador, which saw its
total assets decrease by 3% in the first six
months of this year.
Proving itself a vital cog
in Bancolombia's operations in Central
America, Banco Agrícola's return on
securities investments rose 4.83% in 2016,
compared to 3.5% a year earlier. Its average
rate of return on loans was also up to 9.92%
at the end of last year, compared to 9.88%
in 2015.
Outside the financials, Banco Agrícola
spent $55 million in 2016 for a new
operations center to process the growing
number of local transactions, which went
past 2 million per month this year. LF

BANK OF THE YEAR GUATEMALA

BANCO INDUSTRIAL

Guatemalan lender
minimizes political volatility
and edges out competing
banks to grow assets, loans,
equity and net income
Despite the political noise surrounding
Guatemala, the country's banks have
managed to grow their loan portfolios.
Banco de los Trabajadores has been
a strong player, recording a $9 million
LUIS JORGE SIFONTES,
BANCO INDUSTRIAL

"WE HAVE BEEN A
CORPORATE-ORIENTED BANK FOR A LONG
TIME BUT WE ARE
ALSO ON RETAIL"
http://www.LATINFINANCE.COM
Table of Contents for the Digital Edition of LatinFinance - November/December 2017
