Argentina's Banco Patagonia posted second quarter net income of 147mn pesos (US$35.4mn), up 73.7% from the same period last year, on the back of strong growth in private sector loans, the bank said in its latest earnings release.
Lending to the non-financial private sector reached 8.83bn pesos in the second quarter, a 74.3% increase from 2Q10, helped by the acquisition of GMAC Compañía Financiera, a unit of Detroit-based GMAC and now known as GPAT, the bank said.
Patagonia's non-performing loan ratio stood at 1.0% at the end of 2Q11, better than the 2.1% recorded in the year-ago period and from the 1.1% recorded at end-March.
In February, Argentine central bank BCRA approved a transaction announced late April last year, when federally controlled Brazilian bank Banco do Brasil (BB) agreed to pay US$480mn for a 51% stake in Patagonia. The deal was approved by Brazilian central bank BCB in November last year. The takeover took place April 12 this year.
Regarding the BB deal, Patagonia said its goal is to expand bilateral businesses between Argentina and Brasil.
The bank also expects to increase its branches by 40% over the next five years, focusing on central and northern Argentina.
To read the full earnings release, in English, go to this link
To read the full earnings release, in Spanish, go to this link