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BANTRAB´S BUSINESS & STRATEGIC OVERVIEW


BANTRAB’S BUSINESS To ďŹ nance the consumer needs of Honduran employees and the funding requirements of their employers, focusing on small and medium-size enterprises (SME) and select, diverse business cooperatives.


BUSINESS & STRATEGIC OVERVIEW Out of 15 national banks, BANTRAB is the 11th largest bank in Honduras and the 8th most proďŹ table, with outstanding performance improvements in the last 2 years. The credit card business has now positioned the bank for greater proďŹ t capabilities helping it to achieve international banking potential

by

transactions.

servicing

existing

clients

with

their

export


BANTRAB’S KEY COMPETITIVE ADVANTAGES • Its shareholding base is a source of diverse and continuing growing business. • By law, BANTRAB possesses the unique ability to use periodic paycheck witholdings as the source of repayment for its loans and financings, which generates a solid & manageable credit risk & places the bank in a privileged lending position. • Because of its limited branch network, its cost structure is lean, comparatively low and generally stable. • Its new headquarters in Tegucigalpa will provide state - of - the art technological infrastructure, thus generating additional cost efficiencies.


MITIGATION OF MONEY LAUNDERING & TERRORISM FINANCING RISKS IN HONDURAS • By requirement of the National Banking and Insurance Commission (CNBS for its spanish acronym) BANTRAB has implemented policies and procedures to prevent, detect, monitor and mitigate money laundering (ML) and terrorism financing (TF) risks. • Since 2015, BANTRAB staffed a specialized department to address and manage such risks. • BANTRAB performs a thorough due diligence about knowing its clientele by monitoring and tracing any suspicious transactions flagged by the system. • BANTRAB´S internal auditor periodically evaluates the department’s performance and external auditors annually review the bank’s compliance obligations. • In addition, the CNBS by law undertake annual reviews of the banking system ML & TF risks mitigation performance.


BANTRAB FINANCIAL PERFORMANCE 2015-17 (ALL FIGURES IN MILLIONS OF US $)

2015

2016

2017

INTEREST INCOME INTEREST PAID

25.9 11.5

28.5 18

37.3 18.8

GROSS FINANCIAL MARGIN

14.4

10.5

18.5

(-) RISK PROVISIONS NET FINANCIAL MARGIN (+) NET COMISSIONS (+) OTHER OPERATING INCOME GENERAL & ADMINISTRATIVE TOTAL NON INTEREST EXPENSES OPERATING MARGIN

1.7 12.7 4.5 3.4

2.9 7.6 6.4 10

2.8 15.7 7.0 6.3

16.3 4.2

19.1 4.8

22.1 6.9

(+) NON OPERATING INCOME GROSS PROFITS TAXES NET INCOME

0.1 4.4 1.5 2.9

0.5 5.3 1.7 3.5

0.6 7.5 2.4 5.1

22.3676

23.5029

23.5879

EXCHANGE RATE


FINANCIAL PERFORMANCE PROFILE 2015-2017

TOTAL ASSETS ROA

1.50%

TOTAL EQUITY ROE 1.49%

1.43% 1.00%

20.00%

19.46

15.00%

1.16%

14.76% 12.97%

10.00%

0.50%

5.00%

0.00% ASSETS

2015

2016

2017

307

299

386

0.00% EQUITY

2015

2016

2017

27

28

31

NET PROFITS

LIQUIDITY

6.0 5.0

34%

5.1

4.0

32%

3.5

3.0

2.9

2.0

33%

33%

30%

29%

28%

1.0 NET PROFITS

2015

2016

2017

2.9

3.5

5.1

26%

DEPOSITS

2015

2016

2017

LOAN PORTFOLIO COMPOSITION

350

163

300

124

250

98

85

77

200 150 100

24

28

27

24

50 0

2015

2016

2017

CO M M E R C I A L

24

77

85

155

CO N S U M E R LO A N S

98

124

163

77

142

HOUSING

24

27

28

23

18

TOTA L

146

229

276

LO A N T Y P E S

2015

2016

2017

145

135

S AV I N G

75

CHECK

25

TDC


FINANCIAL PERFORMANCE HIGHLIGHTS 2015-2017 (U.S. $) • At year-end 2017 the bank reported total assets of $386 MM & ROA of 1.5%. • Shareholders’ equity reached $34 MM in 2017, with a corresponding ROE of 19.5%, compared to an average of 12% for the Honduran banking system. • Net profits jumped 75.8% over the period, with most of the improvements (46%) occuring in 2017, principally driven by significant growth in consumer & business lending. • Accordingly, liquidity nearly tripled for the period, expanding to $38 MM by year-end 2017. • Total loans rose to $277 MM in 2017, representing an annual growth of 21%, following a 6.5% decline in the prior year, primarily caused by the allowable return of a portion of a loan portfolio acquisition which management deemed unacceptable by the bank’s credit risk standards. • Total deposits ended 2017 with a balance of $315 MM, for a 34% increase, mainly

generated by

a concerted drive to

upgrade, update & promote its commercial banking services, which not only added new clients but also derived higher deposits from existing clients.


INTERNATIONAL BUSINESS PROJECTIONS 2018-2020 (IN US$ MM)

2018

2019

2020

LETTERS OF CREDIT

22.0

24.2

26.5

WIRE TRANSFERS

18.9

20.7

22.8

COLLECTIONS

1.0

1.2

1.4

41.9

46.1

50.7

TOTAL


BANTRAB S SENIOR MANAGEMENT • Pedro Aguilar Godoy, President of BANTRAB

S board of

directors; 38 years old; agricultural engineer; President of the Credit Union Federation of Honduras; member of board of directors of the Honduran Agricultural Federation; member of the board of directors of the Latin American Federation of Credit Cooperatives and former CEO of Coffee Producer Company “Las Chumecas” in Honduras. • Gustavo Turcios Carias, General Manager; 50 years old; industrial engineer; jd/MBA from Loyola University; 30 years of experience in local, regional and international corporations. • Anadeyda Raudales, Chief Financial Officer; 44 years old; MBA from the National Autonomous University of Honduras; 25 years of regional and international banking experience. • External Auditors: Deloitte & Touche, since 2015.


SUMMARY & REQUEST FOR PROPOSALS • BANTRAB is a solid bank, with increasing growth potential. • Its competitive strengths provide unique marketing support and

enable

additional,

significant,

sustainable

business

development. • Attracting & expanding its clientele’s international transactions & trade finance business is a key component of its renewed strategic development focus. •

Identifying

and

establishing

a

mutually

satisfactory

correspondent banking relationship in the U.S.A. is an important strategy of its 2018 business plan. • If you are interested in working with BANTRAB, we would welcome your proposal outlining terms and conditions.


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www.bantrab.hn

Business & strategic overview ilustrador b  
Business & strategic overview ilustrador b  
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