BANKs OF THE YEAR awards
Banco Basa strives to be a partner in life and business
The COVID-19 pandemic changed the way people lived, worked and studied, turning homes into classrooms and office spaces around the globe.
Paraguay’s Banco Basa quickly saw the need – and opportunity – this presented and came up with a solution. It began offering homeowner loans for remodeling or big-ticket purchases with short-term tenors that came with a six-month grace period.
The bank also created new products for farmers, small-business owners, independent workers and health-care professionals, providing loans with grace periods and preferential rates.
The effort did not stop there, with Banco Basa eliminating interest payments for three months and refinancing loans for up to three years while adding a grace period for customers to get through the crisis. It restructured 34 percent of its portfolio, while also increasing profits, loans and deposits, helping it score our Bank of the Year award for Paraguay.
“At Banco Basa we want to stand out, understanding the needs of our individual and corporate customers not only to be a source of financing but a partner in their business,” said Basa President Fernando Paciello.
The bank was able to use its technological development, liquidity and knowledge of the local market to assist clients through a tough time for Paraguay, which was hit by the pandemic just as the worst drought in half a century was taking a toll on its agri-business, the country’s economic driver.
Paciello said the bank’s “performance during extraordinary difficult circumstances” allowed Banco Basa to keep well ahead of the averages in the country’s financial sector for loans and, as important, keeping down non-performing loans.
The bank’s loan portfolio expanded by 25 percent in the 12 months ending in June 2020, while growth in the system as a whole was 8 percent. Non-performing loans stood at 2.45 percent midway through the year, compared to 3.18 percent in the broader market. Deposits increased by 20.5 percent as of June 2020
Return on equity was a strong 35 percent at the end of 2019, which compares to 22.5 percent for the market as a whole.
“We are going one of the worst economic crises and we know that full recovery is going to be take time. We are going to use our solvency and liquidity to face these difficult times. The crisis has shown we have the right strategy,” said Paciello.