‘We will issue sustainable bonds in the external market’

Last night the Bank of the West* presented the Blue Planet awards in its 18th edition, a recognition that it grants every two years to projects that mitigate environmental impact.

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Gerardo Silva, president of the bank, of Grupo Aval, said that subsidies for social housing need to be unblocked since there are thousands of families waiting for the opportunity and announced an issuance of sustainable bonds for the international market.

How has the bank done this year?

Relatively good, the result shows good profits, above 30%, which is outstanding, and the ROE (return on equity) is in double digits.

Anyone who has analyzed the financial system realizes that there are cycles. They have gone through several and the one we are finishing had the fact that the monetary policy rate of the Bank of the Republic rose 1,150 basis points. The rates reached very high levels and in the consumption modality they even reached 27%.

In the financial system, few entities are winning and there are 12 with losses…

It is a matter of time until in a year the situation is very different from the current one, since today no entity has liquidity problems and banks are already seeing inter-monthly profits.

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What is the situation of the portfolio?

The consumer market is already improving in terms of expiration dates and the costs of supplies.
Next year you will see very different profit and loss statements.

Today the situation is still one of transition and although there is modest growth, when looking at it in real terms there are some with a negative sign.

In housing, if we take the accumulated annual figure, we see a drop and a slight increase in the month-to-month period. In VIS there is a delicate issue and that is that we must try to unblock the subsidies. For those who really depend on subsidies, they have to wait a while while that becomes normal. The important thing is that the rate for these housing loans has dropped to 10.5%.

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How is the sustainable portfolio?

It represents 10% of the portfolio and in two years it will be 15% and in the medium term 20%. Today it amounts to just over $4 billion.

How are you doing with the Credit Pact?

We are meeting the goal and so is the system. Each one does it in their own way and we are committed.

The credits that are reacting best are construction, industry and agriculture. In tourism we make an effort to irrigate more.

How do you see the progress of the economy?

We see the glass half full. There are cycles and there is resilience in market actors and our message is one of optimism because Colombia has endured tough times in the last 10 years.

Will they make more bond issues?

We did one in the first semester and despite the situation it went well. We are seeing a sustainable emission and it has to be relevant. The international market is eager.

*Banco de Oeste is part of the business group that controls the company Casa Editorial EL TIEMPO, to which Portafolio belongs.