Banks' January-July profits up 30.3% on strong loan growth

Friday, August 26, 2011

Paraguay's 16 banks posted combined profits of 765bn guaraníes (US$196mn) in the first seven months of the year, up 30.3% compared to the same period in 2010, thanks to continued strong loan growth, according to figures released by central bank BCP.

The subsidiary of Brazil's Itaú Unibanco (NYSE: ITUB) and locally owned Banco Continental posted the biggest profits in January-July at 180bn guaraníes and 144bn guaraníes, respectively. The local unit of Spain's BBVA (NYSE: BBVA) came in third with 121bn guaraníes in earnings.

The banking sector reported ROA and ROE for the period of 2.94% and 30.9%, respectively, compared to 2.65% and 31.4% a year prior.

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Net loans totaled 28.1tn guaraníes as of July 31, up 23.4% compared to the same time in 2010. The banking system's non-performing loan ratio worsened to 1.78%, from 1.66% a year prior, and from 1.58% recorded at end-June.

Deposits rose 7.36% during the 12 months through July, to 35.9tn guaraníes.

Paraguay's banks had a total of 48.8tn guaraníes in assets and equity of 5.40tn guaraníes as of end-July, BCP figures show.