Search results for

In October, Royal Bank of Canada (RBC) added Royal Bank of Trinidad and Tobago (RBTT) to its set-up in the Caribbean. The Canadian bank announced a $2.2 billion acquisition of RBTT Financial Group. RBTT started discussions with potential buyers in April 2007. These included Canadian rivals Scotiabank and CIBC, through its FirstCaribbean unit. RBC is paying 60% cash and 40% in RBC shares. The combined entity now boasts $13.7 billion in assets and 130 branches in 18 Caribbean countries and territories.

The leading bank in Guatemala, Banco Industrial, tops the tables in terms of total deposits ($3.13 billion), total equity ($377 million) and net loan portfolio ($2.28 billion). These figures are supported by a year-on-year 52% growth in net income at the end of the first quarter of 2008. Industrial has a market share of 28.7% in terms of assets and 30% of all cheques cashed in Guatemala are processed by the bank.

Kazkommertsbank (KKB) has more than double its assets and Bank TuranAlem (BTA) has a far superior net income but Halyk Bank takes the award for best bank in Kazakhstan thanks to its resilience in the face of global financial troubles. First-quarter net income fell by nearly 10% on the 2007 equivalent because of such issues as growing average rates on customer deposits and higher impairment charges on its loan portfolio, but other Kazakh banks have fared far worse. During the roadshow for Halyk’s successful $500 million benchmark Eurobond in April, the first for a Kazakh bank since July 2007, investors noted its "strong liquidity, low exposure to foreign debt, and its perception as the best bank in Kazakhstan". And there is ample evidence to support that sentiment. Halyk’s branches have reportedly remained busy, while KKB’s and BTA’s are much quieter. Credit lines have been shortened and cut at rival banks that have liquidity problems, which has pushed more business Halyk’s way. Between July and December last year, Halyk’s share of the domestic retail market grew from 19% to 21%, overtaking both KKB and BTA, which both lost market share over the same period. In the fourth quarter last year, Halyk’s deposits rose by 21.4%; KKB’s grew just 8.8%, and BTA’s grew not at all.

With a population of just 5.21 million people producing a GDP of a mere $3.7 billion, Kyrgyzstan is not going to be home to any really large financial institutions. The biggest bank in Kyrgyzstan, with $130 million in deposits accounting for a 22.1 % market share, is Asia Universal. It is also the best performer. It is Kyrgyzstan’s fastest-growing mortgage provider and is the only Kyrgyz entity to have received an international credit rating. Total shareholders’ equity rose 212% to $36.5 million in the past year, while net income climbed 246% to $2.7 million. In both of those measures, as in total assets and customer accounts, Asia Universal is by far the country’s leader. It is also the first bank to offer internet banking services, and the only one to establish a dedicated control and compliance department. It is also competitive regionally, with branches in the Ukraine, Kazakhstan and Latvia, as well as a representative office planned for China later this year.

In a year when the virtues of retail and corporate banking have come to the fore, Ceska Sporitelna secures the best bank title again in the Czech Republic. With support from its parent, Erste Bank, it has transformed itself into a banking powerhouse. Through 640 branches Ceska Sporitelna serves more than 5.3 million customers. In the past year it put in another strong performance with net interest income growing from Kc18.37 billion in 2006 to reach Kc21.2 billion ($1.37 billion), while operating profit rose to Kc18.37 billion in 2007 from Kc15.15 billion in 2006. As a result the bank’s return on equity edged up from 23% to 23.8% and the cost-income ratio improved from 53% in 2006 to 50% in 2007.

Political relations between Greece and former Yugoslav Republic of Macedonia are strained but the strong financial and management support from owner National Bank of Greece has helped to ensure that Stopanska Banka Skopje remains the leading force in FYROM’s banking sector. In 2007, the bank posted a 24% return on equity on the back of gross profit of €19.6 million equivalent, according to International Accounting Standards. The bank’s total assets rose to €897.2 million at year-end 2007, up 31% on 2006. Total deposits reached €707.1 million, up 31.2% on 2006. At the end of 2007, about a million Macedonian citizens had accounts with Stopanska Banka Skopje, more than half of the country’s population.

In 2007, the Barbados business unit of First Caribbean International reported good financial results. Productive loans and advances offshore and onshore ended the fiscal year at $1.7 billion, reflecting an 8.2% growth for Barbados over 2006. Net income for the business unit, which includes the East Caribbean Islands and Belize as well as Barbados, came to $65.2 million, an increase of 23.5%. Barbados alone recorded net income of $34.7 million, an increase on the previous year of 30.1%. This contrasts with Barbados National Bank’s 10.7% increase in 2006-07 profits. By December 2007, IT upgrades on three platforms across First Caribbean’s business had also been completed.

In the past three years, HSBC Honduras has multiplied its product offering with new savings accounts and long-term deposit incentives. This year e-banking was also launched by the bank with a novel website that improves security and brings it to international levels.

DNB Nord Bankas has enjoyed another stunning year in Lithuania, with total assets increasing by 47.55% – well in advance of the growth of the broader market – giving it a market share in terms of assets of 13.2%. Loan growth was a dizzying 50.4%, with retail loans up 66.1% and corporate loans increasing by 36.4%. Deposits have not quite kept pace with loan growth but still rose 36.1%, with corporate deposits increasing by 51%.

In recent months, Brazil achieved its long-cherished goal of investment-grade status, awarded by both Fitch and Standard & Poor’s. Then there was Santander’s acquisition of Banco Real from ABN Amro, making the Spanish bank the biggest foreign player in the market.

The past 12 months have not been easy for banks in Nicaragua. A surge in inflation, which peaked at 126.6% in December 2007, to one of the highest rates in the world, has adversely affected the purchasing power of banking clients across the country. This has affected the banks’ non-performing loan portfolios and has tested the strength of Nicaragua’s financial institutions.

Costa Rica’s president, Oscar Arias, and the senior executives of the three leading public banks in Costa Rica, Banco Nacional de Costa Rica (BNCR), Banco de Costa Rica (BCR) and Banco Crédito Agricola de Cartago (Bancredito), continued talks in March about a potential merger.