Scotiabank Peru, the country's third largest bank, has been growing lending at above 20% this year, ending October with US$7.94 billion in loans for a 13.9% market share, and profits at around that same pace, the lender's COO Hubert de la Feld said.
The bank's profits totaled US$258 million in the first 10 months of the current year.
Scotiabank Peru, a unit of Canadian lender Scotiabank, expects to increase loans slightly above the system in 2013, but profit growth will likely slow down given higher capital and mandatory reserve requirements imposed by the local regulator and the central bank as well as a clampdown on fees, de la Feld said.
"This has been a good year for Peruvian banks, with loans rising significantly but with an only moderate increase in the system's delinquencies," de la Feld said.
According to local banking association - Asbanc, the nonperforming loan (NPL) ratio among Peruvian private banks hit 1.79% as of end-November, up 0.27 percentage points compared to the same month a year ago, bnamericas reported.
In 2013, Scotiabank will focus on growing its branch network in Peru both at its banking unit as well as its consumer and small business finance subsidiary CrediScotia and develop new sales channels, such as mobile banking.