LatinFinance - November/December 2015 - 62

for government investments and some
suppliers," he says.
The bank has also invested heavily in
its retail business. General commenced a
strong marketing drive to promote online
banking facilities, new debit and credit card
technology and a push to lower transaction
fees.
"We are selling a model that invests a lot
in ATMs and technology," Alemán says. "We
manage close to 38% of all ATM transactions
throughout Panama, a movement where
clients are exposed to new technology."
Banco General planted the seeds of the
retail focus almost two years ago when
it began partnering with supermarkets,
drugstores and gas stations in areas of
the country that didn't have branches.
Dubbed "BG Express", the boutiques offer
basic services and extended hours to nontraditional, lower-income clientele.
In capital markets, this April the bank
completed a $200 million corporate bond
for Cable Onda. The book closed 1.5 times
oversubscribed and attracted a diverse
group of investors, Alemán says.
Banco General has outlined plans to
expand services into Mexico, Guatemala
and El Salvador, on top of its growth in
Panama and Costa Rica. LF

BANK OF THE YEAR CENTRAL AMERICA

BAC CREDOMATIC

With a broad regional
presence, this bank is
taking advantage of
changes to Central
America's financial services
industry
As Central America's banking landscape
shifts with the exit of international lenders
and the expansion of local ones, BAC
Credomatic stands out for having branches
across the whole region, with the exception
of Belize. The bank's footprint has allowed it
to capitalize on growing intra-regional trade
and set it apart as LatinFinance's 2015 Bank
of the Year Central America.
Credomatic expanded its loan portfolio
by 13% year-on-year to $12.1 billion by the
end of June this year. Customer deposits
rose 7% to $11.7 billion in the same
timeframe, while total assets grew 9% to

62 LATINFINANCE.COM - November/December 2015

ERNESTO CASTEGNARO,
BAC CREDOMATIC

"NEW GENERATIONS
DON'T WANT TO GO
TO BRANCHES, SO TO
SERVE CLIENTS WE
ARE WORKING TO
DIGITIZE THE BANK TO
OPTIMIZE COSTS AND
EFFICIENCY"

$17.9 billion at the end of June this year from
$16.4 billion at the end of June 2014.
Credomatic has also been active in the
capital markets. It issued $210 million in
five-year and seven-year notes in November
2014, with the deal securitized against credit
card receivables and backed by future US
dollar-denominated flows from Visa and
MasterCard sales in Costa Rica.
The bank has used acquisitions as a path
to growth, as well. Two years ago, it bought
financial services firm Grupo Reformador
in Guatemala, increasing its presence in
a key Central American market, says the
bank's chairman, Ernesto Castegnaro. The
acquisition enabled Credomatic to gain new
retail and corporate customers and pursue
cross-selling opportunities in Guatemala,
the most populated country in Central
America.
On the retail banking side, Credomatic
has launched a suite of online offerings and
transaction services this year, improving its
digital banking platforms and serving crossborder clients, while avoiding the costs of
opening new branches.
"Online innovations in transaction
services are a key area of growth around the
world," Castegnaro says. "New generations
don't want to go to branches, so to serve
clients we are working to digitize the bank
to optimize costs and efficiency."
Credomatic has become a multiple
winner of LatinFinance's bank of the year
award by maintaining a diverse portfolio
of retail and corporate customers. With a
conservative underwriting policy in place,
Castegnaro says the bank is well positioned
to expand on its growth rates from the
past 12 months and sustain a healthy credit
portfolio. LF

BANK OF THE YEAR GUATEMALA

BANCO INDUSTRIAL

This institution has grown
market share among both
retail and corporate clients.
Next on its agenda: its own
IPO
Substantial growth in net profits, loans and
total assets put Banco Industrial ahead of its
peers to win Bank of the Year Guatemala,
2015. At the end of June this year, Industrial
recorded 1.12 billion quetzales ($146.2
million) in net profit, a 32.25% increase
from the same period a year earlier.
Meanwhile, total loans reached 39 million
quetzales and total assets were 71.4 million
quetzales, a 13.9% and 12% increase over
the previous year, respectively.
In a tightly-contested domestic banking
market, Banco Industrial has kept pace
with its rivals. It outperformed BAC
International Bank, which recorded 9%
asset growth for the same period, while
Banco de los Trabajadores grew its loan
book by 8%. The bank enjoys a 27% share
of the Guatemalan loan market and a 25.2%
market share in deposits, according to Luis
Prado, the bank's international division
manager.
Guatemala's energy, real estate and
manufacturing industries offer myriad
opportunities, and a growing demographic
among the country's middle class has
enabled the bank to generate high growth
in its loan portfolio, he says.
"Guatemala's private sector is the fuel
of the economy, representing around
93% of GDP," Prado says. "Our growth
has come from a focus on high-margin
segments by strengthening our retail,
small- and medium-sized enterprises and
microfinance sectors."
This year, the bank introduced a
dedicated webpage for its corporate clients,
offering quick and secure online banking
services. Few clients use online banking,
but the numbers are growing quickly: to
357 users in 2014, from less than half that
in 2012.
Prado adds that the bank also rolled
out its own infrastructure, connecting
customers in Guatemala, Honduras and El
Salvador.
Meanwhile, this July, through its holding
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