...Parent Support: Given Scotiabank Peru S.A.A.'s (SBP) performance and growth prospects, it is considered a strategic subsidiary of the Bank of Nova Scotia (BNS, rated `AA¡'/Stable by Fitch Ratings). There is a high probability that the bank would receive support from BNS, if required, provided that SBP does not suffer from a systemic risk event. Sound Capital: Improved performance, sound internal capital generation and, from the outset, significant fresh capital contributions from its parent resulted in a solid capital base that compares well to that of its local and regional peers. Continued growth should slightly erode capital ratios, but they are likely to remain strong and consistent with SBP's ratings. Ample Margin, Consistent Performance: SBP's loan mix has a higher proportion of retail and small- and medium-sized enterprise (SME) portfolio than its peers. Thus, it has a high yield, which, when combined with continued growth, as well as contained operating expenses and loan loss provisions,...
