LatinFinance - November/December 2013 - 45

the government.
"Implementation of reforms will be
one of the big things that will characterize
Mexico's prospects - and hopefully
translate to new business specifically in
the energy and infrastructure space," he
says. LF

BANK OF THE YEAR PERU

Banco de Crédito
del Perú
BCP is growing its retail
businesses and expanding
consumer lending
Peru's economic expansion is slowing. Yet
Walter Bayly, chief executive of Banco de
Crédito del Perú, reckons that the country's
banks will grow at around twice the speed
of GDP. This is a fall from the multiples of
between 2.5 and four times in previous
years. Yet banking prospects are still strong
as new consumers enter the system.
BCP, like its peers, has competed to
capture that growth and now has a market

share of around 30% across its products.
It is Bank of the Year Peru for that
dominance, for diversifying and expanding
lending, and for improving capital
and liquidity over the period under
consideration. And although profitability
slipped and bad loans increased, these were
in line with trends across the system.
As the Peruvian economy has improved,
BCP, which will celebrate 125 years of
business in 2014, has focused on consumer
segments such as credit cards, loans,
mortgages, microfinance and small
business. Its total assets grew 17.9% to 88.7
billion soles ($31 billion) in the year to June
2013, with particularly fast expansion in
retail lending.
Seven years ago, 70% of BCP's portfolio
was wholesale loans. It now has an even
split between retail and wholesale lending.
BCP is largely financed by deposits and uses
its branch network - 380 as of mid-year -
to bring in the granular funding.
The bank is in the first of a four-year
efficiency drive to improve retail risk
management. Bayly says the bank has
identified benchmarks for best practice and
a timetable for addressing gaps. Among its
other goals are to improve the quality of its
scoring and predictive models, and to bring

in more talent.
Mortgages are also a central area of
focus for BCP. There has been a shortage
of low-income housing in Peru and strong
demand for residential projects.
The bank hopes to match its mortgage
lending with term funding - debt with
tenors of around seven years. BCP issues
debt in the local capital markets but also
raises dollars when needed. He reckons the
bank's dollar funding needs are going to be
$200 million to $500 million annually - a
drop from the upwards of a billion a year in
the past.
Portfolio shift
Non-performing loans are on the rise for
BCP. Bayly attributes this in part to the
portfolio shift. At the end of the second
quarter, 1.45% of its loans were more than
90 days overdue, up from 1.16% a year
earlier. "A larger share of our portfolio
consists of retail loans," he says. "And retail
loans have a higher percentage of past due
loans."
While past due rates in consumer
and mortgage lending have remained
fairly stable, the bank's small business
lending has suffered, rising from below
6% in January to 7.56% at the end of June.

November/December 2013 - L ATINFINA NCE.COM 45


http://www.msf.com http://www.msf.com http://www.LATINFINANCE.COM

LatinFinance - November/December 2013

Table of Contents for the Digital Edition of LatinFinance - November/December 2013

Contents
LatinFinance - November/December 2013 - Cover1
LatinFinance - November/December 2013 - Cover2
LatinFinance - November/December 2013 - Contents
LatinFinance - November/December 2013 - 2
LatinFinance - November/December 2013 - 3
LatinFinance - November/December 2013 - 4
LatinFinance - November/December 2013 - 5
LatinFinance - November/December 2013 - 6
LatinFinance - November/December 2013 - 7
LatinFinance - November/December 2013 - 8
LatinFinance - November/December 2013 - 9
LatinFinance - November/December 2013 - 10
LatinFinance - November/December 2013 - 11
LatinFinance - November/December 2013 - 12
LatinFinance - November/December 2013 - 13
LatinFinance - November/December 2013 - 14
LatinFinance - November/December 2013 - 15
LatinFinance - November/December 2013 - 16
LatinFinance - November/December 2013 - 17
LatinFinance - November/December 2013 - 18
LatinFinance - November/December 2013 - 19
LatinFinance - November/December 2013 - 20
LatinFinance - November/December 2013 - 21
LatinFinance - November/December 2013 - 22
LatinFinance - November/December 2013 - 23
LatinFinance - November/December 2013 - 24
LatinFinance - November/December 2013 - 25
LatinFinance - November/December 2013 - 26
LatinFinance - November/December 2013 - 27
LatinFinance - November/December 2013 - 28
LatinFinance - November/December 2013 - 29
LatinFinance - November/December 2013 - 30
LatinFinance - November/December 2013 - 31
LatinFinance - November/December 2013 - 32
LatinFinance - November/December 2013 - 33
LatinFinance - November/December 2013 - 34
LatinFinance - November/December 2013 - 35
LatinFinance - November/December 2013 - 36
LatinFinance - November/December 2013 - 37
LatinFinance - November/December 2013 - 38
LatinFinance - November/December 2013 - 39
LatinFinance - November/December 2013 - 40
LatinFinance - November/December 2013 - 41
LatinFinance - November/December 2013 - 42
LatinFinance - November/December 2013 - 43
LatinFinance - November/December 2013 - 44
LatinFinance - November/December 2013 - 45
LatinFinance - November/December 2013 - 46
LatinFinance - November/December 2013 - 47
LatinFinance - November/December 2013 - 48
LatinFinance - November/December 2013 - 49
LatinFinance - November/December 2013 - 50
LatinFinance - November/December 2013 - 51
LatinFinance - November/December 2013 - 52
LatinFinance - November/December 2013 - 53
LatinFinance - November/December 2013 - 54
LatinFinance - November/December 2013 - 55
LatinFinance - November/December 2013 - 56
LatinFinance - November/December 2013 - 57
LatinFinance - November/December 2013 - 58
LatinFinance - November/December 2013 - 59
LatinFinance - November/December 2013 - 60
LatinFinance - November/December 2013 - 61
LatinFinance - November/December 2013 - 62
LatinFinance - November/December 2013 - 63
LatinFinance - November/December 2013 - 64
LatinFinance - November/December 2013 - Cover3
LatinFinance - November/December 2013 - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com