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BAC San José aims to double
market share by 2009
By Maria Alejandra Moreno,
BNamericas.com
Costa Rica's sixth largest bank
Banco BAC San José aims to
double its individual and
corporate loan market shares by
2009, executive VP at parent
financial group Grupo Financiero
BAC San José, Gerardo Corrales,
told BNamericas.
"Our market share is still
relatively low. Today we have
10-15% of the market in retail
banking and our goal is to
double that within the next
three years. In the corporate
segment, our goal is to reach
20% of market share by 2009 from
the current 10%," Corrales said.
The bank is also involved in the
parent's strategy of increasing
the group's regional
penetration.
"In the past, every Central
America's country operated with
a national perspective, but now
there are regional groups like
ours that seek to provide
services from Guatemala to
Panama," the executive said.
Banco BAC San José is Costa
Rica's sixth largest bank in
terms of assets and loans, with
a market share of 6.1% and 7.2%
respectively at end-March this
year.
The BAC group has opted for
organic growth in contrast to
the current trend in Central
America, where international and
regional financial concerns have
become larger through M&A.
"Organic growth has been our
strategy of choice because we
have been seeking to standardize
policies, procedures,
information systems and
cultures. Now all our companies
have ISO 9001 certification and
the same organizational culture
from Guatemala to Panama, which
is a competitive advantage,"
Corrales explained.
However, the disadvantage of
organic growth is slower
expansion than our competitors,
the executive said, pointing out
BAC's main goal has been
securing high levels of
profitability.
Corrales did not rule out a
change of strategy following the
arrival of the GE Consumer
Finance unit of General Electric
(NYSE: GE), which last year
acquired 49.99% of the group's
parent BAC International Bank.
Grupo Financiero BAC San José
reported assets of 577bn colones
(US$1.13bn) as of March 31. Its
main subsidiaries are Banco BAC
San José and offshore bank BAC
Bahamas Bank, which accounted
for 63% and 24% of group assets
respectively at end-March.
Panama-based BAC International
Bank has a presence through its
subsidiaries in El Salvador,
Guatemala, Honduras, Nicaragua,
Costa Rica, Panama and Mexico.
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