Best bank:
Banco de Venezuela
Best debt house:
CSFB
Best M&A house:
JPMorgan
The Venezuelan banking system is not a happy place: total loans have shrunk to just 11.3% of GDP from 18.7% in the past 10 years, while system-wide return on equity has plunged to 20.8% in 2000 from 38.9% in 1997 and an astonishing 74.6% in 1996. But Banco de Venezuela, BSCH's operation in the country, stands out. Since its acquisition of Banco Caracas, it is number one in terms of deposits ($4.2 billion, a 16.4% market share); assets ($5.2 billion, a 17% share); loans ($2.3 billion, a 17.1% share) and net income ($110 million). Its cost-to-income ratio is much lower than its competitors' at 58.9%, and its 2000 return on equity, 30.4%, is much higher.
In the international markets, CSFB has an enviably close relationship with the government of Venezuela. The Swiss house was lead manager on all three capital market issues out of Venezuela since the beginning of 2000: the sovereign's debut e500 million euro-denominated issue, its e700 million seven-year issue earlier this year, and an e200 million five-year private placement for Electricidad de Caracas.