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Argentina |
The Argentine government is attempting to re-integrate its economy into the rest of the world. The recent debt repayment agreement with the Paris Club is the latest evidence of tentative reductions in political risk. The run-up to the 2015 presidential election looks set to be one of gradual growth, but the economy in which local banks are operating and the persistence of strict government regulations on lending rates to retail SME segments still present operational challenges.
In this environment, the larger banks that have less risky loan portfolios have an advantage. Santander Río maintained its market leading position in total loans to and deposits from the private sector, as well as in commercial loans. Its market ranking in mutual funds, credit cards and personal loans is second. This volume, mixed with strong risk-management practices, continues to serve the bank well: the bank increased net income by 17.1%