The group underwent a major organisational restructuring, searching for a better fit between a bigger and more solid bank and the need to serve different client segments. Total costs became an issue because operations had grown considerably. Therefore all contracts with suppliers were revised and renegotiated to meet the needs of the new organisation.
Last year, costs were controlled, but they were not at the expected levels and a thorough analysis of processes was needed. The efficiency ratio has been cut from 72.5% to 62.4% in two years, and the bank expects this figure to drop to 58% by 2009. The bank has continued to grow its consumer business. Today this segment represents a third of the loan portfolio. Operating in a difficult and volatile environment, the bank has kept a firm hand on costs.
“Produbanco had a very good year in 2006,” says chief executive Abelardo Pachano. “The dynamic growth of deposits at annual rates above 20% reflected the continued confidence of our customer base. We maintained assets of high quality that, coupled with a reinforced focus on efficiency, explain a RoE of 25%.
“We receive the award as Bank of the Year in Ecuador with a commitment to continue our work and deliver superior results in the long run. Even under conditions of increased political and economic uncertainty, we plan to expand the value proposition to our clients and maintain Produbanco’s strong performance.”
