Best Bank − Guatemala: Banco Industrial

Nov 1, 2008

Big Fish Banco Industrial’s acquisitions of Banco del Occidente in 2006, Banco del Comercio in 2007 and Banco Quetzal this year, make it king of a fragmented but quickly consolidating market. It now commands a 28% share in Guatemala, according to the bank, with assets of $5.4 billion as of June. Industrial is also the largest bank at a time when there is an investor flight to quality, says Marvin Guevara, analyst at Fitch. This has resulted in a large increase in deposits over the past two years compared to other banks, despite system-wide troubles.


All this growth, however, has pressed the bank’s capital at a time when funds are hard to find. Profitability, measured by a ROA of 2.0% and ROE of 24.2%, was below the system averages of 2.4% and 30.1%, respectively, as of June. “Industrial’s challenge is the same as the rest of the country’s banks: maintaining strong capital levels,” says Guevara, adding that Guatemala’s system is...

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“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management