BCP has pursued this impressive growth by keeping costs under control – it reduced its cost-to-income ratio from 57.9% at the end of 2006 to 50.2% in June 2008, for example – and with a range of programmes targeting specific customer groups.
In the high-margin small and medium-sized enterprise segment, for example, BCP has increased its sales force and created new products; this has resulted in a two-fold increase of its SME loan portfolio.
Meanwhile, in low-income urban areas with access to limited financial services, it has implemented an innovative programme – Agentes BCP – through which BCP installs mini-banks in commercial stores, enabling them to offer a much broader range of banking services to more than 4000 Bolivians.
If the bank has done well to increase shareholder return, it also has a keen eye on protecting it. BCP has focused on increasing its non-interest income to achieve a more stable and low-risk income; as of June 2008, non-interest income represented 47.9% of total income. It also boasts the highest ratio of provisions over non-performing loans (227.8%), ensuring there is a safety net for customer deposits and shareholder capital.
“At Banco de Credito BCP, we are proud of the work that all of our 1500 employees contribute in making our institution the best bank,” says CEO Diego Cavero. “Our ethics and goals are practised by everybody, making this institution a better bank every day, reflecting our beliefs in the development of Bolivia, its people and its financial system."
