Banco Agrícola has three key objectives: to reach 25% return on equity by 2010 (last year it achieved 21.8%); to achieve higher growth than its competitors (2007 profits rose by almost 15%); and to keep its efficiency ratio under 40% (last year its cost-to-income ratio was 37%).
A central plank towards achieving this strategy has been the accurate segmentation of client groups and more effective targeting of appropriate products and services to those customers.
Banco Agrícola has gone a long way towards achieving those ends in the past 12 months. For example, in its ‘employee’ retail sector, it has launched a consumer loan product under the banner of Credicash, which simplifies and speeds up the loan approval process. It has also launched Adelanto Salarial, a credit product aimed at advancing cash for employees whose payroll is managed by the bank.
For the higher income client segment, Banco Agrícola has designed a new revolving loan facility called Credicheque which allows the customer to use a cheque-based credit line that can be used in any store in El Salvador.
“We are honoured that The Banker has selected our bank for the third year in a row; [it recognises our] strong management and prudent risk approach,” says Roberto Orellana Milla, president at Banco Agrícola, El Salvador. “Since last year we became part of the Bancolombia Group and we have been strengthening our institution to world class standards. Our commitment is to keep offering a quality service to our clients in the central American region.”
