Case study: Costa Rica Dr Fernando Naranjo General Manager, Banco Nacional de Costa Rica Costa Rica #FinAgri13 121
Agenda Topics 1 Costa Rica Main economic indicators 2 Banco Nacional Costa Rica Historical evolution 3 Agricultural and Rural Development priorities at Banco Nacional Costa Rica
Agenda Topics 1 Costa Rica Main economic indicators 2 Banco Nacional Costa Rica Historical evolution 3 Agricultural and Rural Development priorities at Banco Nacional Costa Rica
The Costa Rican economy continues to show great stability and a high degree of openness (2012) Index 2012 Population GDP 4,5 million USD 45,107 million GDP per capita USD 9,665 Exports goods and services USD 16.9 billion Services as % of exports 32,8% Exports per capita USD 2,275 Trade openness index 64,1% (Rank 49) Human development index Rank 62 Competitiveness global index Rank 53 FDI Tourism 5% GDP 5% GDP
Rates of growth GDP 9 8.8 8 7.9 7 6 6.4 5.9 5 4.3 5.0 5.1 4 4.4 3 2 2.7 1 0-1 2003 2004 2005 2006 2007 2008-1.0 2009 2010 2011 2012
Even though North America continues to be the largest trade partner, Central America and Asia have gained share 100% 90% 80% 70% 60% 50% 40% North America Central America and Panama European Union Asia Others 30% 20% 10% 0% 2002 2012 Export Destination
Agriculture still remains a strong contributor to the economy and exports Index 2012 Share of GDP at current prices 6,2% Agricultural exports / Total exports 38,9% Unemployment 6,5% Agricultural working population 14,1% Main Products: coffee, bananas, pineapple, flowers
Agenda Topics 1 Costa Rica Main economic indicators 2 Banco Nacional Costa Rica Historical evolution 3 Agricultural and Rural Development priorities at Banco Nacional Costa Rica
Throughout its history, Banco Nacional has played a significant role in the major industries 1914 Agriculture 70 s Industry and commerce 90 s Tourism and free zones 00 s Consumer banking, electronic media Next Investment banking and rural development Infraestructure Pineapple and other agricutural commodities Tourism and Services Banana Coffee
Banco Nacional Costa Rica continues to be the largest and most relevant financial institution in the country Index 06/2013 Assets Equity Loan Portafolio USD 9,4 billones USD 893 billones USD 5,4 billones Credit market share 23% Export credit market share 20% Deposits market share 38,4% Time Deposits market share 26,8%
Banco Nacional is the third largest Central American bank in terms of assets Largest Banks in the region (millons of US$) HSBC Bank (Panamá) Banco General (Panamá) Banco Nacional Costa Rica Banco Nacional (Panamá) Banco Industrial (Guatemala) Bladex (Panamá) Banco de Costa Rica Banco Popular Dominicano Banco Reserva (Rep. Dominicana) Banco G&T Continental (GT) 7,338 6,967 6,343 6,216 5,739 5,690 5,302 4,575 9,333 11,183-2,000 4,000 6,000 8,000 10,000 12,000 Source: Fitch 2012
Agenda Topics 1 Costa Rica Main economic indicators 2 Banco Nacional Costa Rica Historical evolution 3 Agricultural and Rural Development priorities at Banco Nacional Costa Rica
Banco Nacional is the largest contributor to agriculture lending in Costa Rica Banco Nacional participation in the agricultural credit portfolio Total System Banks State Banks 58% 42% 55% 45% 48% 52% Banco Nacional
In 2012, Banco Nacional participated 7.5% in overall agriculture lending 7.5% 5.8% 1.7% Private Banking State Banks Banco Nacional
Banco Nacional has developed a strong presence in the small enterprise segment Sector Credit Balance (mill.usd) Rural credit 145 Micro enterprises 497 Small enterprises 299 Medium enterprises 179 Lending enterprises 23 Other 63 TOTAL 1.206 Banca Mujer BN Pymex USD 217 million USD 162 million
BN Rural Development is a program aimed at meeting the financial objectives of those enterprises which derive income mainly from agricultural activities Supplier Training and technical assistance Agriculture credit BN RURAL DEVELOPMENT Plan family welfare Pension found Productive credit program Family welfare program that includes health, education, personal expenses and vehicles Rural housing program Capital expeditures (assets such: property, buildings and equipment) Bankarization
Banco Nacional, 100 years of history in the rural development