Chilean bank Banco del Desarrollo is planning to up its total loan portfolio 7% this year.
The bank will see a resurgence in commercial lending in 2004 due to an expectant upswing in the local economy, according to CEO Hugo Trivelli. "We have faith that the economy will grow 4-5% this year which should in turn increase credit demand," Trivelli said
Loans growth will also be backed by a stronger emphasis on the consumer credit segment, local financial daily Estrategia quoted the executive as saying.
Desarrollo will look to increase its current 3% stake in the consumer credit market this year through the development of new products targeted toward the low-to middle-income earners, Trivelli said.
In terms of profitability, Desarrollo expects to post an ROE of between 16% and 17% with revenue coming mainly from credit operations centred on small and medium enterprises (SMEs) and the mortgage loan segment, he added.
