Despite strong loan growth, Banco Pine ups Q2 profits only 1.4%

Thursday, August 11, 2011

Net income at Brazilian midsize bank Banco Pine expanded 1.4% in 2Q11 to 36.1mn reais (US$22.2mn) from the year-ago quarter, as expenses impacted results, despite its posting solid lending growth, according to the bank's latest financial statements.

Pine's loan book hit 6.44bn reais at end-June, up 24.1% from 12 months prior, heavily concentrated in corporate lending with 6.25bn reais, up 30.3%.

Income from financial intermediation came to 331mn reais in the quarter, up 16.6% from the same period in 2010, but income from derivative financial instruments plummeted 77.9% to 9.75mn reais in the same comparison.

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Pine's financial intermediation expenses grew 21.4% to 236mn reais in the quarter over 2Q10.

The 90-day non-performing loan ratio stood at 0.2% at end-2Q11, compared to 0.6% at end-2Q10. The bank's capital adequacy ratio was 16.6%, compared to 17.1% three months before and 18.5% a year ago.

To read the full statements, in English, go to this link

To read the full statements, in Portuguese, go to this link