...Minor Asset Quality Deterioration: Banco Internacional del Peru S.A.'s (Interbank) loan quality indicators showed modest deterioration over the course of 2015, primarily in its credit card and payroll loan portfolio affected by slower economic growth. However, Interbank's loan quality continued to compare favorably with the financial system as a whole despite the bank's relatively greater retail orientation. Robust Performance: Interbank's consistently strong profitability benefits from stronger growth in higher margin products, growing contribution from fee income, and improving operational efficiency. Notwithstanding a disproportionate growth in non-earning assets, operational profitability increased to 3.2% in 2015 from 3.1% the year prior. Interbank's operating expenses have consistently trended downwards to 3.7% of average assets in 2015 compared to a rate of 6.4% in 2008. Adequate Capital: Interbank's capital is adequate but was slightly pressured in 2015 due to the appreciation of...
