Pre-tax profits at leading Bolivian banks tumbled last year as Covid-19 lockdowns squeezed the country’s economy.
Domestic banks’ performance was also affected by government directives that require banks to comply with minimum credit quotas aimed at low-income home buyers, as well as key sectors, such as agriculture, mining, manufacturing and tourism.
Banco Mercantil Santa Cruz, the country’s largest lender by assets, saw pre-tax profits fall 60% year-on-year to $22m in 2020, while rival Banco Nacional de Bolivia, which is the largest bank by Tier 1 capital, saw profits drop by 43.6% to $34m, according to The Banker Database.
Banco Bisa saw a more than 60% drop year-on-year to $20m last year, whereas Banco Union, the country's second largest lender by assets, fared slightly better with a 42% decrease, to $38m.
This contrasts sharply with year-on-year profit rises in 2019 of 71% at Banco Mercantil Santa Cruz and 51% at Banco Union.
Trends identified using The Banker Database, an online database providing comprehensive financial data and insight for 4000 of the world's leading banks in 190 countries. Contact us.
