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Best Bank: BBVA Banco Francés |
The second half of 2008 was not easy for banks in Argentina. Uncertainty reigned as the Argentine pension system was taken into public hands and the international global crisis saw Argentine risk soar. As a result there was a sharp slowdown in the economy, with growth falling from 7% in early 2008 to 4.9% in the fourth quarter.
In addition, after congressional elections were expedited to June, speculation over another debt default and currency devaluation grew. The benchmark discount bond dropped 32.7% and the Argentine peso shed 8%.
However, despite the pressures, BBVA Banco Francés ended its fiscal year 2008 with a profit of $321.5 million, up 36.8% in the year.
This impressive growth continued into the first quarter of 2009, when BBVA’s bank reported profits of Ps85.8 million ($22.8 million), four times higher than in the first quarter of 2008.
This increase sets Banco Francés apart from its main competitors, with Santander Río, the largest bank in Argentina, reporting a 37% decrease in earnings between the first quarter of 2008 and the first quarter of 2009. Banco Macro reported a 3% increase in earnings, and two other local banks, Grupo Financiero Galacia and Banco Hipotecario, also announced improved results.
During the year, Banco Francés increased its loan portfolios to the private sector by 10%.
The retail sector also had an outstanding year, growing 44%, mainly through personal and secured loans.
In terms of assumed risk, the bank maintains a portfolio quality indicator of 0.97% and a risk coverage level of 177%.
