Credicorp Q3 net income increases 31%, preparing for period of sustained growth - Peru
Credicorp Q3 net income increases 31%, preparing for period of sustained growth - Peru
Saturday, November 7, 2009
(BNamericas.com) - Peru's largest financial services group Credicorp (NYSE: BAP) reported third quarter net income of US$122mn, up 5.6% on the second quarter and rising 31.4% year-on-year, the group said in its latest earnings release.
Credicorp's ROAE for Q3 was 24.0%, down from 25.6% in 2Q09 but up from 20.7% in 3Q08.
Net interest income totaled US$215mn in the quarter, decreasing 8.1% from Q2 but up 7.0% year-on-year.
Credicorp's main asset, Peru's largest banking player Banco de Crédito (BCP) - and its Bolivian unit - was the largest earnings contributor to the group's third quarter results, with US$90.7mn.
BCP's net loans totaled US$10.4bn at end-September, up 0.5% from end-Q2. In the 12 months through September, loans rose 6.6%, down from 14.2% growth in the 12 months through June. Assuming Peru's GDP grows 4-5% next year, BCP maintains its prediction of loan growth of some 15% for 2010, with retail possibly being above 15% and wholesale possibly coming in lower, CFO Alvaro Correa told a conference call.
The bank "is preparing itself for sustained GDP growth of about 5% over the next 5-6 years, and we are getting ready in terms of infrastructure, capital and funding," CEO Walter Bayly added.
The past due loan ratio worsened to 1.56% at end-September from 1.39% at end-June and 0.78% at end-September 2008.
Bayly said he expects the ratio to deteriorate further in Q4, but to start improving in the first quarter or first half of next year, as loan book and GDP growth resume.
Provisions, which dropped in Q3 from the previous quarter due to the decreasing rate of loan deterioration, should remain constant for the fourth quarter or increase slightly, he said.
Increased competition will eventually pressure spreads in retail lending, as has happened in corporate lending, but that should not be an issue in the short term, Correa said, adding that the bank will look to make alliances with midsize retailers in the credit card business and to increase distribution channels for microlending....
CEF boosts Q3 profits 20.4% - Brazil
Saturday, November 7, 2009
(BNamericas.com) - Brazilian federal bank Caixa Econômica Federal (CEF) boosted third quarter net profits 20.4% to 870mn reais (US$506mn) compared to the year-ago quarter, the bank said in a press release.
CEF said ... more
Santander could go shopping to beef up presence - Colombia
Saturday, November 7, 2009
(BNamericas.com) - The Colombian banking unit of Spain's Santander (NYSE: STD) could buy local financial institutions to boost the bank's small presence in the country, Dow Jones reported country head Román Blanco as sa... more
Banamex to open 125 branches in 2010, increases SME lending 46% - Mexico
Saturday, November 7, 2009
(BNamericas.com) - Mexico's Banamex, controlled by Citigroup (NYSE: C), plans to open 125 new branches in 2010, after opening an estimated 120 new branches this year.
The expansion will include alliances with pharm... more
Banco Nación to launch micro/small business credit line for capital goods imports - Peru
Saturday, November 7, 2009
(BNamericas.com) - Peru's state bank Banco de la Nación (BN) will in the next few days launch a new credit line to help micro and small enterprises - locally referred to as Mype - import capital goods, local press repor... more
Remittances drop 7.3% in January-August - Bolivia
Saturday, November 7, 2009
(BNamericas.com) - Remittances sent home by Bolivians living abroad totaled US$668mn from January-August this year, down 7.3% from the same period last year, according to the central bank (BCB). In August alone, rem... more
Bradesco aims to grant US$3.49bn in home loans next year - Brazil
Saturday, November 7, 2009
(BNamericas.com) - Brazil's second largest private sector bank Bradesco (NYSE: BBD) aims to issue at least 6bn reais (US$3.49bn) in home loans next year, said the bank's executive VP, Domingos Abreu.
"We're releasin... more
Government could inject US$58.3bn into BNDES - report - Brazil
Saturday, November 7, 2009
(BNamericas.com) - Brazil's government is planning to inject further money into national development bank BNDES to secure growth of the domestic credit market in coming years, local news agency Agência Estado cited a re... more
IN BRIEF Banks invest US$125mn in new security measures over past few years - Colombia
Saturday, November 7, 2009
(BNamericas.com) - Colombian banks have invested a combined US$125mn to improve security for customers over the last few years to comply with a rule issued by the financial services regulator in 2007, local financial da... more
IN BRIEF Citi continues branch expansion - Argentina
Saturday, November 7, 2009
(BNamericas.com) - The Argentine banking unit of Citi (NYSE: C) is continuing its branch expansion with the opening of an office in Buenos Aires - its third new branch this year, local daily La Nación reported.... more