Banco Nacional de Bolivia

Banco Nacional de Bolivia S.A.

Type	Sociedad Anónima
Traded as	NASDAQ: BNBVY
Industry	Banking, Financial services
Founded	September 1, 1871
Headquarters	Sucre, Bolivia
Key people	Ignacio Bedoya Sáenz (Chairman), Gonzalo Argandoña Fernández de Córdova (Vicepresident)
Products	Consumer banking, corporate banking, credit cards, investment banking, mortgage loans.
Revenue	Bs. 943 million (2014)[1]
Operating income	Bs. 336 million (2014)[1]
Net income	Bs. 228 million (2014)[1]
Total assets	Bs. 18.71 billion (2014)[1]
Number of employees	2,033 (2014)[1]
Divisions	BNB SAFI S.A., BNB Valores S.A., BNB Leasing S.A.
Website	https://www.bnb.com.bo

Banco Nacional de Bolivia (abbreviated as BNB) (English: National Bank of Bolivia) is a Bolivian bank and financial institution headquartered in Sucre, Bolivia. Founded in 1871, it is one of Bolivia's oldest banks.^[2][3] It is also the country's second largest bank by total assets.^[4]

BNB is a full-service financial institution that provides a range of financial products and services to a diversified individual and corporate customer base in all the nine departments of Bolivia, including savings accounts, credit cards, mortgages, commercial loans and investment management. As of 2014, the bank operated through 105 branches and 253 ATM's.

The bank is parent of Grupo BNB, a group which comprises BNB Sociedad Administradora de Fondos de Inversión S.A. (SAFI) (BNB Administrative Society of Investment Funds), active in the investment and administration of funds, BNB Valores (BNB Stocks), a brokerage house, and BNB Leasing, a leasing entity.^[5][6]

History

19th century

Banco Nacional de Bolivia was conceived on 1 September 1871 by decree as a financial institution granted to issue banknotes, as well as to offer financial services such as deposits and loans.^[7] The bank was established in Cobija, an important port city located in the Litoral Department, Bolivia's only territory with access to the Pacific coast. An additional head office was established in the Chilean city of Valparaíso, and thus BNB had dual legal addresses at the time.

Since its founding, Banco Nacional de Bolivia provided inputs to national development at different stages of its history. The bank began providing financial assistance for the exploitation of nitrates in the Litoral region, particularly guano, used for fertilizer and to make saltpeter for the manufacture gunpowder. The Bolivian Littoral was subsequently annexed by Chile after the War of the Pacific. During the war, the bank loaned Bs. 600,000 to the Government of Bolivia in an effort to maximize the mobilization of the Bolivian Army in the war. Following the loss of the Bolivian Litoral, the bank moved its headquarters to the city of Sucre, where it held its first board of directors meeting. In the following years, the bank expanded its network to the cities of Tarija, La Paz, Cochabamba, Oruro, Potosí and Santa Cruz de la Sierra.

20th century

A branch of BNB in La Paz, Bolivia.

Banco Nacional de Bolivia issued its own banknotes at a rate of 150% of its capital since its founding.^[8] On January 14, 1914, the Central Bank of Bolivia was established by the government, becoming the country's only monetary authority. Despite a central bank was established, Banco Nacional de Bolivia continued to offer significant financial assistance to the government. In 1903, BNB loaned Bs. 150,000 to the state in order to finance the Bolivian campaign of the Treaty of Petrópolis and in 1932, the bank granted US$210,000 of its foreign reserves to support the efforts of the Chaco War.^[9][10] In the following decade, BNB expanded its network of branches to all nine departments of Bolivia.

The political instability that continued for the rest of the century presented many challenges to the fledgling Bolivian banking system. After the 1952 Bolivian Revolution, the private sector finally overcame difficulties and challenges imposed by the central regimes and political groups in power. During this period, Banco Nacional de Bolivia, experienced considerable growth and in 1959 it granted a credit loan to the Corporación Boliviana de Desarrollo (Bolivian Development Corporation).^[8]

In 1993, Banco Nacional de Bolivia created its first division: "Nacional de Valores S.A.". It is the bank's first brokerage division. Later in 2005, the it was rebranded to BNB Valores S.A. (BNB Stocks).^[11]

In 1997, Banco Nacional de Bolivia created its second division: "Nacional SAFI S.A.". The division provides investment management services. Later in 2000, it was rebranded to BNB Sociedad Administradora de Fondos de Inversión S.A. (SAFI) (BNB Administrative Society of Investment Funds).^[12]

21st century

Banco Nacional de Bolivia became one of Bolivia's largest banks. Currently, it is the second largest bank in Bolivia by assets. BNB is a full-service financial institution that provides a wide range of financial products and services to a diversified individual and corporate customer base in all the nine departments of Bolivia, including savings accounts, credit cards, mortgages, commercial loans and investment management. The bank operates a network of 105 branches and 253 ATM's nationwide.

In 2009, Banco Nacional de Bolivia created its third division: BNB Leasing, a leasing entity offering financial services such as mortgages, machinery and construction equipment leasing and car leasing.^[13]

Operations

Consumer

Consumer Banking is the largest division in the company, and provides a wide range of financial services to consumers and small businesses. The consumer banking network of BNB includes over 100 branches and over 250 ATM's throughout Bolivia:

• Certificates of deposit/Term deposits: Developed and marketed as DPF Rentable, it is a CD in Bolivianos with interest rates of 4.5%, as weighted to pay for a five-year period.^[14]
• Mobile Banking: BNB launched its mobile app Banca Móvil del BNB for iOS and Android operating systems. It allows BNB costumers to conduct a number of financial transactions through their mobile devices as well as to see balance inquiries and statements.^[15]
• Credit cards: BNB issues Visa and MasterCard credit cards for purchases and online purchases.
• Microfinance: Developed and marketed as "Banca MyPE", it is a corporate business designed to provide loans for trade activities to small enterprises.^[16]
• Mortgage loans
• Saving accounts

BNB/AAdvantage Credit cards

Banco Nacional de Bolivia and American Airlines conducted a shared promotion called "One Day Sale AA", in which cardholders may enjoy a one-time 20% discount on ticket prices paid with a BNB/AAdvantage credit card. Additionally, cardholders can earn one mile for every US dollar (or equivalent in local currency) in card purchases. American Airlines is the only US airline offering direct flights to Bolivia.^[17]

Corporate

Banco Nacional de Bolivia offers a wide range of corporate banking services including:

• Financial advisement
• Business Interest Accounts
• Equipment Financing
• Car Leasing

Investment

BNB Sociedad Administradora de Fondos de Inversión S.A. (SAFI) (BNB Administrative Society of Investment Funds), is BNB's primary division active in the investment and administration of funds. Its the leading entity in managing investment funds in Bolivia with a market share of over 30%, and therefore the largest investment management company in Bolivia. BNB SAFI manages a portfolio of more than US$240 million of investments.^[18]

References

1. "Annual Report 2014." (PDF) (in Spanish). Banco Nacional de Bolivia S.A. Retrieved 11 August 2015.
2. "El Banco Más Antiguo de Bolivia Inauguró Oficinas en Riberalta." (WEB) (in Spanish). Radio Riberalta. Retrieved 11 August 2015.
3. "Historia Bancaria de Bolivia (Banking History of Bolivia)." (WEB) (in Spanish). Ariel Abad Nina Chuqimia. Retrieved 11 August 2015.
4. "Los Más Grandes, Los Mejores." (WEB) (in Spanish). Revista Independiente. Retrieved 11 August 2015.
5. "Equties - Banco Nacional de Bolivia S.A.". Financial Times. Retrieved 11 August 2015.
6. "Productos y Servicios" (WEB). Banco Nacional de Bolivia. Retrieved 11 August 2015.
7. "BNB: Somos part de la history de Bolivia" (in Spanish). La Prensa. Retrieved 11 August 2015.
8. "Síntesis Histórica" (in Spanish). Banco Nacional de Bolivia. Retrieved 11 August 2015.
9. "BNB: Historia" (in Spanish). MiraBolivia. Retrieved 11 August 2015.
10. "El Banco Nacional de Bolivia crumple 140 años" (in Spanish). Hoy Bolivia. Retrieved 11 August 2015.
11. "Nosotros - BNB Valores" (in Spanish). Banco Nacional de Bolivia. Retrieved 11 August 2015.
12. "Nosotros - BNB SAFI" (in Spanish). Banco Nacional de Bolivia. Retrieved 11 August 2015.
13. "Nosotros - BNB Leasing" (in Spanish). Banco Nacional de Bolivia. Retrieved 11 August 2015.
14. "Aspectos Institucionales - Productos y Servicios" (in Spanish). Banco Nacional de Bolivia. Retrieved 12 August 2015.
15. "Memoria Annual 2013" (PDF) (in Spanish). Banco Nacional de Bolivia. Retrieved 12 August 2015.
16. "Productos y Servicios - Banca MyPE del BNB" (PDF) (in Spanish). Banco Nacional de Bolivia. Retrieved 12 August 2015.
17. "BNB/AAdvantage Credit Cards in Bolivia". American Airlines. Retrieved 12 August 2015.
18. "BNB SAFI tiene nuevo fondo de inversión" (in Spanish). JornadaNet.com. Retrieved 12 August 2015.