In a presentation of its full-year results to analysts, Banesto said it is targeting 45,000 new clients from the small- and medium-sized enterprises (SMEs) segment of the market in 2005. It expects revenues from its SME business to grow by 20 per cent this year, in line with a year earlier, while the ordinary margin is seen as rising by 15 per cent, compared with a 13.2 pct increase in 2004.
More generally, Banco Espanol de Credito SA said it is targeting an efficiency or cost:revenue ratio of below 43 per cent in 2005, compared with 44.5 percent in 2004.
The bank also said it is targeting a return on equity of around 19 per cent in 2005 and expects its market share to increase by 0.25 percentage points compared with the 0.38 percentage points rise registered a year earlier.
It expects non-performing loans as a percentage of total lending to be below its competitors' average this year, noting that it was still above the sector average in 2004.