Uncertainty hits planning, says Venezuela’s Banesco
Improving profitability sustainably has been one of the toughest tasks amid economic uncertainty, says Venezuela’s largest private lender
Uncertainty over Venezuela’s
economic and financial future has been one of the biggest
challenges to profitability and long term planning for the
country’s largest privately-owned lender, its
chairman has told LatinFinance.
The bank is Venezuela’s
largest privately-owned lender, with a 13.8% market share at
the end of September, according to regulatory data.
"It has been a big
challenge to [maintain profitability] while complying with the
full regulatory framework and with the risk standards that we
have defined internally — and all of this in a
changeable and unpredictable economic environment, which has
made planning very difficult," Juan Carlos Escotet
In response, the bank
has tried to operate in a way that allows it to adapt swiftly,
2013 Bank of the Year Venezuela — has
nonetheless performed well, lifting return on equity 20 points
to 80.88% in the year to June, and return on assets by one
point, to 5.97%.
Banesco plans to grow by upgrading its
online banking operations and consolidating its international
presence, Escotet said.
"The bank has the goal of maintain its
status as the most important privately-owned financial
institution in Venezuela, and to continue exporting its
successful business model," Escotet said.
"To that end, Banesco seeks to continue
its expansion in the markets where it already has a presence,
and consolidate its operations in Colombia and Spain, where it
has most recently entered." LF
For the complete list of the 2013 Banks of
the Year, see the November/December
edition of LatinFinance.