February 4, 2011 / 3:53 PM / in 7 years

Credicorp sees loan growth 18-20 percent in 2011

2 Min Read

* Sees new central bank measures to restrict credit growth

* Q4 new loans rose 24.2 percent from a year earlier

LIMA, Feb 4 (Reuters) - Credicorp (BAP.N), Peru's largest financial holding company, said on Friday that its loan book growth in 2011 should be 18 to 20 percent, or around three times faster than economic growth.

The company, which has a 97.3 percent stake in Peru's largest bank, Banco de Credito, also said it expects more measures from the central bank to restrict credit growth.

The central bank raised its benchmark interest rate to 3.25 percent from 3 percent last month and elevated deposit requirements for lenders.

"Whatever happens above 20 percent, they are concerned -- we expect some controls in terms of reserves and other measures," Chief Financial Officer Alvaro Correa said in a presentation of fourth-quarter earnings.

Credicorp reported a 24.2 percent increase in loan activity in the fourth quarter of 2010 compared from a year earlier.

Peru's economy grew at nearly 9 percent in 2010, partly because of increased access to credit, and expansion could moderate this year to about 6 percent.

The company plans to open 30 branches and install more than 500 ATM machines in 2011. (Reporting by Caroline Stauffer. Editing by Robert MacMillan)

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