November 1, 2013
Business has been good for banks in Uruguay, which means times have been good for Banco de la República Oriental del Uruguay. The government backed-lender’s role in the banking sector remains strong, accounting for some 40% of the market.
There is ample room for private banks to compete, but they have yet to reach the scale and profitability of Banco de la República. The competitive landscape has remained largely stable over the past year. Banco de la República had $13.5 billion in assets as of June 30, and accounted for 43% of the domestic loan market and 44% of the deposits, according to Moody’s.
Santander Uruguay, in second place, had $5.1 billion in assets, equal to a 14% share of the
Dominating Uruguay’s banking system, Banco de la República has outperformed the market in terms of profitability, but it faces many of the same difficulties as its competitors