BanBif, a bank in Peru that was formerly known as Banco Interamericano de Finanzas, is reportedly planning to sell up to USD 400 million in bonds in an effort to expand its microfinance lending in the country. This shift towards microfinance is reportedly a trend among traditional banks in Peru as a result of corporate lending numbers decreasing and consumers’ borrowing capacity increasing.
BanBif’s CEO, Juan Ignacio de la Vega, spoke about the potential for the move at the Latin American Banking Federation’s General Assembly in November. According to Mr. de la Vega, “…75 percent of the 2.5 million small and medium-size companies here [in Peru] don’t have access to bank financing.” Mr. de la Vega reportedly said that the lending will focus on companies with ten or less employees. In Peru, this accounts for 42 percent of the country’s USD 180 billion gross domestic product (GDP) and 60 percent of the country’s workforce. The majority of Peru’s microenterprise growth is taking place in the retail and agricultural-export industries.
BanBif, formerly known as Banco Interamericano de Finanzas, is a bank based in Peru. In 2011, BanBif reported its total assets were PEN 5.3 billion (USD 2.1 billion) and its client deposits were PEN 3.9 billion (USD 1.5 billion). Its gross loan portfolio was USD 1.3 billion. The bank’s return on equity (ROE) was 18.9 percent while its return on assets (ROA) was 1.34 percent. At the end of 2011, BanBif reported net profits of PEN 66.8 million (USD 25.9 million).
By Lena Phillips, Research Associate
BanBif (formerly known as Banco Interamericano de Finanzas) is a bank based in Peru. In 2011, it changed its name to BanBif in an effort to refresh its public image and appeal to a broader client base including young people, entrepreneurs and families. According to the bank’s 2011 annual report, its total assets increased by 13.8 percent to PEN 5.3 billion (USD 2.1 billion), its credit portfolio grew by 17.9 percent from the previous year to PEN 3.4 billion (USD 1.3 billion). BanBif’s nonperforming loans (NPL) ratio sat at 0.90 percent while the provisions for credit risk reached 262.13 percent. Client deposits reached PEN 3.9 billion (USD 1.5 billion); this represented a growth of 12.3 percent compared with the previous year. The Bank’s equity reached PEN 387 million (USD 150 million); an increase of 17 percent from the previous year. Its gross loan portfolio was USD 1.3 billion. BanBif reached a return on equity (ROE) of 18.9 percent and a return on assets (ROA) of 1.34 percent. At the end of 2011, BanBif reported net profits of PEN 66.8 million (USD 25.9 million), a growth of 23.4 percent.
Sources and Additional Resources:
Bloomberg.com: “Peru’s BanBif Seeks to Offer $400 Million of Bonds in 2013″ by Alex Emery, November 19, 2012, http://www.bloomberg.com/news/2012-11-19/peru-lender-banbif-seeks-to-sell-400-million-of-bonds-in-2013.html
MicroCapital Universe Profile: BanBif (Banco Interamericano de Finanzas), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BanBif+%28Banco+Interamericano+de+Finanzas%29
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