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Best Bank: Banco de Crédito del Peru |
Banco de Crédito del Peru (BCP) is a national champion. It is the largest Peruvian bank according to all measures – total assets, total loans, total deposits and therefore net equity and net earnings. In mid-2008, BCP boasted a 38.1% market share of deposits and 30% of loans.
At the end of 2008, the leading Peruvian bank earned a net profit of $423.5 million, a 27.7% growth compared with the previous year’s profits. Return on equity improved also to 32.8%, above the system average of 31.3%. These impressive results were also backed up by a 12% increase in operating expenses as BCP continued to expand its infrastructure – 57 branches were opened in 2008. This year BCP is planning a $150 million investment in a new data centre.
However, despite BCP’s strong growth profile, the Peruvian banking system is still small compared with its peers in the region, with only 25% of GDP penetration. Even neighbouring Bolivia, with a GDP that is one-tenth of Peru’s, can claim a slightly higher penetration. The number two bank, BBVA Banco Continental, which holds 25% of deposits, has total assets of $11 billion. In contrast, the fifth-biggest bank in Chile reported total assets of $12 billion.
In the capital markets one deal particularly stood out. It came from the Colombian chocolate company Compañía Nacional de Chocolates, it was the first Colombian firm to issue an Inca bond. The company successfully issued a 10-year bond worth $40 million in the Peruvian market. Citi arranged the deal. The Citi bankers who worked on the deal expect more Inca bonds to follow.
Other Citi deals include Inkia Energy, which raised $88.4 million through a local Peruvian bond.
