EXECUTIVE SUMMARY

this month ’ s series : January 2010

A glance at the system
Various foreign banks have been
attracted to the Peruvian market
in recent years due to its ideal
conditions, and new players are
expected to continue arriving,
adding greater depth to the
system.
The future: Retail banking
With the bulk of the enterprise
segment catered for, it is time
for banks to look to other highly
profitable niches that have so far
been neglected but which are
now taking shape.
The allure of small debts
Micro-loans are characterized
by high profitability with
potential for vigorous growth and
development, and are proving to
be one of the most attractive new
segments.
Homes for everyone
The same forces that have driven
demand for consumer loans and
micro-loans are also favoring
the mortgage market, which has
grown significantly.
Banking in Peru: Time for retail
Peru has been the economy of choice
in Latin America in recent years. With
high growth rates, a significant influx of
foreign investment, more open trade and
higher domestic consumption, the South
American nation has drawn the attention
of investors and businesspeople alike.
Rooted in this dynamic framework and
macroeconomic stability, Peru’s financial
sector offers attractive opportunities
with an interesting combination of high
profitability, considerable growth potential
given the low degree of financial services
penetration in the country, and solid
supervision and regulation.
Although the country has made progress
on the road to strengthening financial
services - it increased the ratio of private
sector credit to GDP from 16% in 2004 to
21% in 2009 - it is still lagging behind
Evolution of total direct loan portfolio (2004-2010e)
120,000
100,000
more developed financial markets like
Chile’s, where the ratio hovers at 90%.
Undoubtedly, there are opportunities
to continue along this path, especially
considering that only one in four adult
Peruvians without income restrictions
participates in the banking system.
This combination of positive factors has
helped the banking system - which today
boasts 16 banks, some US$31 billion in
loans and 2.6 million loan clients - grow
considerably in recent years, when credit
growth has far exceeded the economy’s
already high rate of growth.
In this report, we will take a look at
banking in Peru, examining the main
trends in the sector and its outlook for
future growth.
45%
40%
35%

30%
80,000
25%

20%
60,000
15%

10%
40,000
5%

20,000 0%

-5%

0 -10%
09

10
04

05

06

07

08

20
20
20

20

20
20

20

Nominal total in millions of soles

Year to year growth (%)

Source: BNamericas, based on SBS figures

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 Written and researched by
María Alejandra Moreno

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