Latin Finance - September/October 2009 - 50

Andean bcp interview Bouncing Back by Lucien Chauvin N There are sectors where we have relatively small market share. One is credit cards/consumer finance, where we are roughly at 20%, and the other is microfinancing, where we are again at 20%. Our goal is to be above 30%. We are gearing up for this, because it involves growing down market. We are a What are the profit drivers? very good bank on microfinance, but on In the second quarter of 2008 the high end. We are a good card bank, we had some translation losses, but again at the high end. This involves which are reflected in an increase changing our business model at bit. in profits this year. We did not We think that the government’s have a profitable year last year investment program, lower interest with Atlantic Security Bank and Heady 2010 growth: Bayly rates and the stabilization of the world our insurance business, Pacífico, and the turnaround in these two sectors is substantial. We have economy will make the second half of the year clearly better problems at Atlantic Security because of the Madoff affair [BCP than the first. We have been surprised with the level of activity lost $50 million in the scandal] and with our portfolio. Atlantic with mortgages. Mortgages have been growing quite robustly and we think that this is a very important driver for the Security does not have loans, but fixed income portfolios and construction sector. those were tremendously hurt last year because of the crisis. For the bank, core earnings are going to be relatively flat. How are plans to issue a bond in Chile progressing? Between September 2008 and January 2009, we embarked We are in the process with the regulators. We think that this on a relatively large expansion of our network. This implied will be an interesting source of funding for us. It should be a larger cost base and those branches are only now going to ready within the next 60 days. become profitable. We do not need the cash urgently. This is a new market In general, in what we have seen over time is that the that will be there for us. BCP is well known in Chile and the bank’s portfolio grows approximately 3.0-3.5 times that of Chileans are constantly looking for more paper to invest GDP growth, so if this year GDP expands 1.5%-2.0%, then the abroad. We have no doubts that this will be successful. LF bank’s portfolio should grow around 5.0%-6.0%. We believe that growth will be close to 2.0% this year. Next year we forecast that GDP will grow 5%-6%, so > we forecast growth for the bank at 18% or 20%. Domestic UPDATE consumption is also an important motor for growth. Mortgages For the full interview, see www.latinfinance.com continue to grow. The peak was in December 2008, when we et income at Credicorp, Peru’s largest financial holding company, jumped 56% in the second quarter compared to 2008, to $115 million, fueled by good results at all subsidiaries. Credicorp owns Banco de Crédito (BCP), Atlantic Security, Pacífico, Prima AFP and BCP Bolivia. In Peru, BCP has 32.15% of loans and 35.37% of deposits in the system, according to the Banking, Insurance and Pension Fund Superintendency, and is the only bank with at least one branch in all of Peru’s 25 departments. BCP CEO Walter Bayly talks to LatinFinance. Banco de Crédito, Peru’s biggest bank, is forecasting strong growth next year, in line with the country’s GDP expansion path. It plans to raise funds in Chile. dispersed around $44 million. It came down to $20 million in January, but has been coming back. We dispersed $40 million in July, which is quite robust. Where do you want to grow in Peru? 50 LatinFinance September/October 2009
http://www.latinfinance.com

Latin Finance - September/October 2009

Table of Contents for the Digital Edition of Latin Finance - September/October 2009

Latin Finance - September/October 2009
Contents
Investment Banking Survey
Who Said That?
OTPP Investment Strategy
Central Bank Scorecards
Brazil Liability Management
Real Estate Equity Resurrected
Structured Finance Forecasts
Grim Outlook. Reform Required
Banorte Seeks to Grow
Peru Spending Hits a Block
BCP Sees Better Days
Caribbean Investment Report
Sustainable Banking
Legal Services Survey
Parting Shot
Latin Finance - September/October 2009 - Latin Finance - September/October 2009
Latin Finance - September/October 2009 - Cover2
Latin Finance - September/October 2009 - Contents
Latin Finance - September/October 2009 - 2
Latin Finance - September/October 2009 - 3
Latin Finance - September/October 2009 - 4
Latin Finance - September/October 2009 - 5
Latin Finance - September/October 2009 - 6
Latin Finance - September/October 2009 - 7
Latin Finance - September/October 2009 - 8
Latin Finance - September/October 2009 - 9
Latin Finance - September/October 2009 - 10
Latin Finance - September/October 2009 - 11
Latin Finance - September/October 2009 - 12
Latin Finance - September/October 2009 - 13
Latin Finance - September/October 2009 - Investment Banking Survey
Latin Finance - September/October 2009 - Who Said That?
Latin Finance - September/October 2009 - 16
Latin Finance - September/October 2009 - 17
Latin Finance - September/October 2009 - 18
Latin Finance - September/October 2009 - 19
Latin Finance - September/October 2009 - 20
Latin Finance - September/October 2009 - 21
Latin Finance - September/October 2009 - 22
Latin Finance - September/October 2009 - OTPP Investment Strategy
Latin Finance - September/October 2009 - 24
Latin Finance - September/October 2009 - 25
Latin Finance - September/October 2009 - Central Bank Scorecards
Latin Finance - September/October 2009 - 27
Latin Finance - September/October 2009 - 28
Latin Finance - September/October 2009 - Brazil Liability Management
Latin Finance - September/October 2009 - Real Estate Equity Resurrected
Latin Finance - September/October 2009 - 31
Latin Finance - September/October 2009 - 32
Latin Finance - September/October 2009 - 33
Latin Finance - September/October 2009 - 34
Latin Finance - September/October 2009 - 35
Latin Finance - September/October 2009 - 36
Latin Finance - September/October 2009 - Structured Finance Forecasts
Latin Finance - September/October 2009 - 38
Latin Finance - September/October 2009 - Grim Outlook. Reform Required
Latin Finance - September/October 2009 - 40
Latin Finance - September/October 2009 - 41
Latin Finance - September/October 2009 - 42
Latin Finance - September/October 2009 - 43
Latin Finance - September/October 2009 - 44
Latin Finance - September/October 2009 - Banorte Seeks to Grow
Latin Finance - September/October 2009 - Peru Spending Hits a Block
Latin Finance - September/October 2009 - 47
Latin Finance - September/October 2009 - 48
Latin Finance - September/October 2009 - 49
Latin Finance - September/October 2009 - BCP Sees Better Days
Latin Finance - September/October 2009 - 51
Latin Finance - September/October 2009 - 52
Latin Finance - September/October 2009 - 53
Latin Finance - September/October 2009 - 54
Latin Finance - September/October 2009 - Caribbean Investment Report
Latin Finance - September/October 2009 - 56
Latin Finance - September/October 2009 - 57
Latin Finance - September/October 2009 - 58
Latin Finance - September/October 2009 - 59
Latin Finance - September/October 2009 - 60
Latin Finance - September/October 2009 - 61
Latin Finance - September/October 2009 - 62
Latin Finance - September/October 2009 - 63
Latin Finance - September/October 2009 - 64
Latin Finance - September/October 2009 - 65
Latin Finance - September/October 2009 - 66
Latin Finance - September/October 2009 - Sustainable Banking
Latin Finance - September/October 2009 - 68
Latin Finance - September/October 2009 - Legal Services Survey
Latin Finance - September/October 2009 - 70
Latin Finance - September/October 2009 - 71
Latin Finance - September/October 2009 - 72
Latin Finance - September/October 2009 - 73
Latin Finance - September/October 2009 - 74
Latin Finance - September/October 2009 - 75
Latin Finance - September/October 2009 - 76
Latin Finance - September/October 2009 - 77
Latin Finance - September/October 2009 - 78
Latin Finance - September/October 2009 - Parting Shot
Latin Finance - September/October 2009 - 80
Latin Finance - September/October 2009 - Cover3
Latin Finance - September/October 2009 - Cover4
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