sustainable banks survey

Rebuilding Trust by Staff Reporters

ustainability is no longer an Our fifth annual survey of ethics and sustainability at option for LatAm banks, who Sare increasingly responding LatAm’s leading banks shows standards getting tougher as to calls from investors to prove good governance, according to a LatinFinance investors demand more. Brazilians continue to stand out. study in association with Madrid-based consultancy Management & Excellence “Both are very Most Sustainable Banks (M&E). The detailed assessment of committed to Brazilians continue to lead ethics, corporate social responsibility sustainability,” says Cox. (CSR) and corporate governance Rank “They developed a culture Rank Bank Country Score vs 2008 (CG) at the region’s 40 biggest listed of thinking long term, 1 Bradesco Brazil 98.68% f financial institutions shows Brazilian and discovered that the Itaú-Unibanco Brazil f institutions continuing to pull ahead. social and environmental a “Sustainability is no longer an 3 Santander Mexico 92.05% impact are important a option, but a need,” says William 4 Brazil 91.39% too,” he adds. Cox, managing director at M&E. He Santander-Real Brazil a The dynamic adds that sustainability is a synonym 6 BCI Chile 89.40% _ Brazilian duo is the pair for solid financial management. 7 BBVA Chile Chile 88.08% a to beat in the region. “More than ever, banks are seeing 8 BBVA Banco Venezuela 86.75% _ “Banks as competitive sustainability as a tendency and not Provincial as Bradesco and Itaú- a fashionable term. LatAm banks are 9 BBVA Colombia 86.09% _ Unibanco are bound to increasingly interested in increasing 10 Banco Galícia Argentina 85.43% a tie,” says Cox. “The new profit though their reputation with 11 BBVA Banco Peru 84.11% _ Itaú-Unibanco is likely investors.” Continental to be working hard to This year’s survey from M&E, which 12 Ixe Mexico 79.47% a integrate personnel and has increased its scope, shows overall 13 Chile 78.15% _ sustainability systems.” compliance dropping to 59.82% this 14 BBVA Banco Frances Argentina 77.48% _ M&E notes that year, from 69.36% in 2008. This year’s 15 Colombia 74.17% a Brazilian banks continue study is 40% bigger in terms of criteria, 16 Mexico 71.52% a to improve practices in owing to the financial crisis which has 17 Banco de Crédito Peru 68.87% a sustainability. Besides increased the need for transparency. del Perú the leaders, Banco do And besides changes caused by 18 Nossa Caixa Brazil 66.89% a Brasil, Nossa Caixa and consolidation, the sample group – the Santander Chile _ Santander-Real have top 40 listed banks – has altered with 20 Banesco Venezuela 66.23% New improved their position shifting market capitalization. 21 Banco Macro Argentina 62.91% a versus last year. Nonetheless, Bradesco and Itaú are 22 BBVA Bancomer Mexico 61.59% _ “When we talk about still on top, with joint first place and Average 59.82% _ Latin banks we must a score of 98.68%, versus 96.33% last 23 Scotia Inverlat Mexico 56.29% _ separate Brazilian banks year. Both are expected to continue to 24 Scotiabank Peru 54.97% a from the other countries,” tie, although the distractions of Itaú’s 25 Mercantil Servicios Venezuela 54.30% _ says Cox. “While Brazilian merger with Unibanco gives Bradesco 26 Banrisul Brazil 50.99% New banks are more mature an edge over its competitor, says M&E. 27 Corpbanca Chile 49.01% New and prepared for foreign However this is counterbalanced by the 28 Banco de Bogotá Colombia 41.06% _ investments, the others fact that both Itaú and Unibanco can Santander Colombia New need to understand that claim all the points they got last year, 30 Banamex Accival Mexico 39.07% a sustainability is a demand when the former was joint first and the Source: Management & Excellence of the market.” latter ranked eighth. According to M&E, the

September/October 2009 LatinFinance 67