The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

From growth stories to dividend plays

The mood among bankers attending Felaban’s annual conference in November was conspicuously relaxed. Why relaxed? Well, business is good

RD banner 600x208

The collapse in the number of bilateral correspondent banking relationships in recent years – driven by anti-money laundering and compliance and a key focus of the Latin American banking federation (Felaban) meetings – has now stabilized. 

It may have thinned out some of the delegations to the annual get-together from the smaller banks in the smaller markets, but those that still come seem comfortable about the emergent status quo.

More to the point, the business environment for the region’s banks is increasingly healthy. Funding options remain cheap, and there is abundant liquidity thanks to the continued strong appeal of emerging markets to international investors. 

Profitability is also up from already high levels, and even the region-wide need to improve digital platforms is being contained in terms of operating expenses. Provisions have peaked and asset quality is improving.

Revenues are also set to rise. Economies are growing across the region, driven by recoveries in Brazil, Argentina and, to a lesser extent, Peru and Colombia. Mexico remains positive, too, despite the negative impact of big political risk.

Banks in the region will face growing demand for credit next year as GDP improves.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree