A central plank in BBVA’s strategy has been to focus its balance sheet on the most profitable business segments. It has moved funds out of investments in products such as certificates of deposit, and redeployed them to grow areas such as the bank’s credit portfolio.
The strategy is backed by the introduction of new products and services to attract new customers. One example of this in the retail business is the launch of Card 365, a low-fee credit card; it implements high security features to prevent internet fraud and cloning, and includes features such as Virtual Lock, which enables customers to activate and deactivate the product over the phone.
Banco Provincial has not sacrificed credit quality, though. It has maintained a low ratio of non-performing loans – at 0.81% of its overall portfolio, the lowest in the Venezuelan banking system - with coverage of 258.7%.
