Small But Strong

Small But Strong

Corporate & Sovereign Strategy

Ecuador is still struggling after a banking crisis that helped trigger a government debt default in 1999. But Banco de la Producción (Produbanco), proves that even small banks can prosper in adverse conditions. Although it had assets of just $786 million in 2002, Produbanco still managed to churn out a 22.02% return on equity. Ecuador's economy is growing only sluggishly but the banks are doing remarkably well. According to Fitch Ratings, net income for private banks rose 40% year-on-year to $82.7 million in 2002. Produbanco bank did even better, posting net earnings of $16.7 million, 32% higher than income of $12.6 million in 2001. Produbanco, established in 1978, traditionally foc

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