One of the most relevant of these initiatives was the implementation of a re-engineering programme to reduce the cost-income ratio of the bank’s two recently acquired subsidiaries, Banco de Occidente and Banco de Comercio.
There was a notable improvement in funding costs through access to the international capital markets. The bank strengthened its dominant position in the market, gaining a 27% market share, up from 20% at the end of 2005. It also opened remittances offices in three US states to broaden its market share in family remittances. It now has a 20% share of that market.
“Banco Industrial is pleased and honoured to be selected as Bank of the Year in Guatemala for the second consecutive year,” says chief executive Diego Pulido Aragón. “Last year was highlighted by our ability to identify, execute and integrate acquisitions and capitalise on related synergies: following the acquisition of Banco de Occidente in 2006, we absorbed the operations of Banco de Comercio in January 2007, and in August 2007 we announced the acquisition of Banco del Quetzal, the 13th and 11th bank, respectively, in the system.
“Banco Industrial’s strategy focuses on further penetration in retail banking and reaching the unbanked population in Guatemala as well as establishing an international presence, with specific interest in developing an operation in Honduras and El Salvador, the US and south of Mexico.”
