Banco Lafise Bancentro grew profits by 13.3% last year, reaching $40.8 million, one of the best results in the bank’s history. The performance earned it the award for LatinFinance’s 2016 Bank of the Year Nicaragua for the third consecutive year.
The bank has consistently put up impressive numbers over the last three years, capitalizing on Nicaragua’s sustained economic growth. The economy expanded 4.9% in 2015 and has averaged 5.2% growth over the last five years.
Lafise boosted its return on equity by 70 basis points, to 24.4% in the 12 months to June. At the same time, its return on assets rose 20 basis points, to 2.6%, and its capital adequacy ratio improved to 12.4%, from 12.2% a year earlier.
Lafise’s assets grew 3% from June 2015 to June 2016, while its net loan portfolio expanded by 14.1%, reaching $1.1 billion.
Some 70% of its loan portfolio is made up of corporate and small- and medium-sized businesses across Nicaragua’s productive sectors. More than 90% of Lafise’s lending is backed with collateral and it has a solid fee base, drawing on revenue from foreign exchange, guarantees and wire transfer service fees.
Lafise’s retail presence continues to expand. The bank opened five new branches and 48 ATMs over the last year, bringing its total to 90 branches and 252 ATMs, the largest network in Nicaragua. LF
WINNER: Banco Lafise Bancentro