The competitive landscape in the banking sector in Mexico is looking tighter every month. At the end of June 2011, the credit loan portfolio of the 41 banks operating in Mexico had grown by 11.6% in twelve months. This growth allowed smaller banks to increase its market share, making it harder to stand out among the stiff competition.
Under these tough circumstances, Banco Interacciones has managed to stand behind its strategy and keeps growing steadily, increasing its credit loan portfolio by more than 52% in the last 24 months. Thanks to this boost in its portfolio, Interacciones is now the fourth largest creditor to Mexican governments in its three levels.
The Mexican regulation for credits to governments is undergoing critical changes that will make harder to evaluate and to give credits to this sector. These changes will test the creativity and experience of every bank that is willing to keep supporting the development of the country.
Done properly, this new regulationwill foster transparency and restore confidence, increasing the amount of credits given to state and municipal governments.
Banco Interacciones is a market leader in this sector, with almost a decade of experience; the bank continues to be an innovative and active player in the market. Banco Interacciones is ready to help its clients, allowing them to overcome the difficulties they willface in light of the new regulatory conditions.
The efforts made by Interacciones have not been unnoticed by the market, some players such as HR ratings have recognized them.
On September 14th 2011, HR ratings granted an A+ rating to Banco Interacciones, acknowledging its healthy loan portfolio, insured on a 85.9% by the Federal Government; its high profitability: Interacciones has ranked among the top three banks in Mexico during the past 5 years, getting a ROE greater than 20% for every year in this period. It had a ROE of 26.11%, 29.00% and 22.94% for 2008, 2009 and 2010 respectively; its knowledge and experience; its high credit quality; and the efforts made to lower its liquidity risk.
Banco Interacciones is well aware of the challenges ahead. The bank has been preparing in advance to face them and it is ready to take advantage of the opportunities arising under the new market and regulatory conditions.