Latin America best managed banks 2018: Colombia
Welcome to Euromoney's new publication dedicated to covering the development of the region’s banks and financial markets.
Banco de Crédito del Perú
Euromoney Latin America attempts to look through the gloss of momentum and short-term results to answer the question long-term investors ask: which banks have the best blend of performance, management expertise and fundamental strength to outperform?
Banco Popular Dominicano
The country’s bankers are frustrated: the system is sound, their banks are generally well run, and yet they are among the worst performers in Latin America. Something has to give. Some hope it will be the country’s attachment to the dollar.
Bankers say the battle to hit mandated lending targets has created a scramble for borrowers in Bolivia. That’s not the only concern they have about the activist attitude of the country’s government, though one important area – microfinance – is thriving.
The country’s biggest banks have kept profits up by keeping banking simple and benefiting from enviable net interest margins. But are they too conservative for their own – and the economy’s – good?
Bankers and investors are increasingly confident that the country’s next president will adopt a programme of fiscal reforms, even though no leading candidates are standing on that platform. Why? Because over the past decade, Brazil has become a ‘marketocracy’.
As US rate rises become a reality, Latin American markets face another home truth: have they actually become a standalone asset class, or is a sell-off inevitable?
Latin American equities have become unfashionable as EM investors focus on thriving tech companies elsewhere. And while the region has some unappreciated structural strengths, if the few tech companies that do emerge head to New York, it could compound the problem.
The outlook for both Credit Suisse and Brazil is better than it has been in years, and CEO José Olympio Pereira has his eyes firmly focused on the opportunities coming his way.
The country’s gradualist approach to adjusting its fiscal deficit was always balanced on a knife-edge. The markets were willing to finance the experiment because of their faith in the economic team. But a recent unforced error has made the path to success even more precarious.
Paraguay’s bright young things are trying to transform the country’s economy. A dogged commitment to macroeconomic stability means that a commodity slump and recessions in its two big neighbours have not derailed growth.