The outlook for the Peruvian banking system remains stable outlook on the back of strong financial fundamentals, says Moody's Investors Service in a report released Friday.
In its latest study titled "Banking System Outlook: Peru”, the rating agency stressed the stable outlook reflects continued healthy earnings that are supported by strong loan demand, stable core funding and effective cost controls.
"The stable outlook also reflects the view Peru's strengthened financial position, as noted in our recent upgrade of the sovereign to A3, fosters a supportive operating environment for banks" said Jeanne Del Casino, a Moody's Vice President and author of the report.
Furthermore, Del Casino noted the slowdown in the nation’s economic growth is expected to rebound in the second half of the year, fueled by resilient private consumption and investments in new infrastructure projects.
"Resilient private consumption and a large pipeline of infrastructure projects underpin our expectation that growth will rebound in the second half of 2014 and in 2015 and continue to support bank performance.", she said.
Peruvian banking system is made up of 15 banks authorized by the Superintendence of Banking, Insurance and Private Pension Funds (SBS).
(END) DLG/DLG
Published: 7/25/2014