The size of Brazil’s economy, as in previous years, is reflected in 2015's Central and South America ranking, with the country's banks taking the top five spots. The top five lenders include those with operations outside of Brazil's domestic market, such as Itaú Unibanco, which tops the regional ranking with Tier 1 capital of $36.23bn, as well as institutions with more of a local focus, such as Bradesco, which ranks third with $29.07bn of core capital.
Whereas in previous years Mexican and Chilean lenders have been the biggest threat to Brazil's dominance at the top, this year it is Venezuela that provides the stiffest competition. Thanks to substantial increases to their Tier 1 capital, two of the country's banks – Mercantil Servicios Financieros and Banesco Banco Universal – move up the ranking to sixth and seventh place, respectively. Mercantil’s Tier 1 capital grew by nearly 40% to $4.9bn, while Banesco’s $4.8bn saw an impressive 80.3% increase.
Large capital expansions have been recorded elsewhere in Venezuela as well, and the country's banks dominate the Latin American highest movers ranking, accounting for eight of the 10 positions. The other two lenders that make it into the ranking are Banco de la Nacion Argentina and Brazil’s Banco da Amazonia, thanks to changes in their Tier 1 capital of 54.47% and 46.91%, respectively.
Venezuela also leads the ranking by returns on capital, with Banco de Venezuela’s 80.7% ratio by far the largest in the region. It is followed by Buenos Aires-based Banco Macro’s 69.39%, then a 66.43% ratio by Peru’s Banco de la Nacion, and next comes Banco Agrario de Colombia’s 65.27%. Fifth in the list is another Venezuelan name, Banco del Tesoro, with a 65.24% profitability ratio.
Mexico’s largest lender, Grupo Financiero Banorte, slips to eighth position in the regional ranking, down two places on its position in 2014. Its Tier 1 capital increased from a year earlier but this was not enough to keep up with the Venezuelan rally. Similarly, Banco de Chile falls to 11th place in 2015 from seventh, despite bolstering its Tier 1 reserves.
It is a Mexican lender that tops the new entrants table. Microfinance specialist Banco Compartamos enters this year’s global ranking in 877th position, with Tier 1 capital of $568m.
