Latin American regional awards
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Best Bank: BBVA Paraguay |
Banking in Paraguay is still relatively underdeveloped: the sector has been hit consistently over the past decade or so by closures blamed on poor management and a slow credit market. BBVA Paraguay, this year’s best bank, contributed just 2% of the BBVA group’s net profits in South America in 2006. Nonetheless, the unit’s performance was strong: it is ranked first among its peers in loans and second in deposits, with market shares of 20% and 15% respectively. Return on equity stood at 43.5%, a year-on-year increase of 8.9%. BBVA Paraguay sees loan growth as crucial. It is trying to kickstart the local mortgage market, launching the country’s first 20-year loans for homes in November. It has also innovated in the farming sector, offering a line of five-year loans for the stockbreeding sector where the previous maximum duration was three years. This targeting of the loan market has proved extremely effective, with a delinquency ratio of just 1.1% – the lowest in the market.