BancoEstado microfinance unit expects 14% loan growth this year

Monday, December 12, 2011

The microfinance unit of Chilean state bank BancoEstado expects to close this year with 14% loan growth, the unit's general manager María Soledad Ovando told BNamericas.

BancoEstado Microempresas is likely to finish 2011 with a loan portfolio of 584bn pesos (US$1.13bn) and then it aims to close 2012 with a portfolio of 607bn pesos, she said.

Ovando said that BancoEstado now has around 425,000 clients and increasing this number is no longer a priority as it prefers to focus on creating a deeper relationship with these clients. She also added that it would be healthy for the local microfinance sector if private banks increase their microlending efforts.

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BancoEstado is by far the largest player in Chile's microcredit market, with a 62% share in terms of clients, according to the bank's own estimations.

The full interview with Ovando will be published in this week's Banking Perspectives, for subscribers only.