Banco de Venezuela
In a tight three-way race with rivals Banco Mercantil and BBVA Provincial, Banco de Venezuela’s high degree of profitability and efficiency in 2002 enabled it to come out ahead.
In view of Venezuela’s economic and political difficulties, the bank’s achievements are commendable. Last year, it boosted net profit by 113.5% to almost $170m and had a ROE of 38.6%. It was also the most efficient of the country’s banks with a cost-to-income ratio of 51.4%.
Banco de Venezuela drew some extra strength in the competition from its merger with Banco Caracas, which it completed in May 2002. The significant economies of scale from the merger are reflected in the bank’s low cost-to-income ratio. Added benefits from the tie-up include an improvement in the margin on its loan portfolio to 11.5% from 9.3% as well as a decline in its non-performing loan ratio to 4.2%, which is well below the market average.
On the technology front, the bank implemented its ALTAIR platform, enabling it to tailor its products and services to customer needs, reduce their time to market and improve their overall quality.
“The bank has a dynamic, innovative and flexible organisation, which has adapted its business strategy and its structure to efficiently manage the constantly changing market conditions in the country,” said Michel Goguikian, Banco de Venezuela’s chairman.
