The Covid-19 pandemic has hit Latin America hard, adding to the region’s woes after years of sluggish growth. According to the World Bank, its gross domestic product contracted by 6.5% in 2020, with its four biggest economies — Brazil, Mexico, Argentina and Colombia — seeing drops of 4.1%, 8.3%, 9.9% and 6.8%, respectively. For Argentina, it was the largest retraction since 2002, at the height of the country’s economic crisis.
Despite difficult operating environments, Brazilian and Mexican banks continue to dominate the leading positions in The Banker’s latest ranking of Latin American banks by Tier 1 capital, occupying nine of the top 10 spots. Bancolombia is the only outsider for the second year in a row; however, it has slid down one position to 10th, overtaken by Santander’s Mexican subsidiary.
