Latin Finance - November 2008 - 45

of the 2008 “However, we expect that in the long run, the economy will be affected by these social conflicts. As in any country in the world, when political troubles arise, then the country as a whole is affected, not only economically but also socially.” The bank operates in both the retail and corporate segments and plans to open eight more branches in the country by mid-November. Founded in 1905, it was the first to cover all regions of Bolivia and has branches in all nine provincial capitals. It will have a total of 215 ATMs within the next few months. As of early October, BMSC had around $1.32 billion equivalent in deposits from its clients against $1.00 billion last year and $453 million in 2005. It enjoys a 25% market share, according to Unzueta Zegarra. Last year, total assets amounted to $1.22 billion and net profit came to $28.6 million, against $20.6 million in 2006 and $9.9 million in 2005. It had ROA of 2.34% and ROE of 47.30% in December last year, against an ROA of 2.01% and ROE of 35.51% in December 2006. “The bank has been experiencing high growth rates,” says Unzueta Zegarra. “This year’s plan is aimed at maintaining our large market share, therefore we have been deploying an aggressive strategy in order to grow at the amount needed to reach our goal,” he adds. The bank aims to expand its branch and ATM network by 20% this year. Unzueta Zegarra says that 2008 saw the launch of several campaigns and promotions to increase cross selling and bring better service to clients. “We believe that it is not only the products we are innovating that will bring a better penetration rate, but also the quality of our distribution channels, and the quality of our service.” BMSC has been investing in technology, advertising, and human resources to support this. The bank has embarked on two new projects that should help it reach new customers it has not serviced before. BMSC does not participate in microfinancing but works with SMEs and entrepreneurs. “This year we started working with smaller businesses and with smaller entrepreneurs than in the past, however we do not consider them as part of microfinance,” says Unzueta Zegarra. The sectors of the Bolivian economy that have been seen the fastest expansion in the past few years include mining and oil and gas. There has also been a boom in agribusiness, according to Unzueta Zegarra. “Bolivia has experienced a good run in the past few years,” says Unzueta Zegarra. “Proof of that is the significant increase in our reserves, as well as the performance of many industries including the banking industry. We are currently experiencing high inflation rates, and a significant appreciation of our currency compared to the US dollar.” Recently, there have not been any significant changes in banking regulations. Bolivia has one of the most established banking regulatory systems in LatAm, despite political and social turmoil. It works well with established and clear rules. BMSC continues to have a good run because it is headquartered in the wealthiest part of Bolivia, which is enjoying an agricultural and mining boom. LF November 2008 LATINFINANCE 45

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Latin Finance - November 2008

Table of Contents for the Digital Edition of Latin Finance - November 2008