Private sector banks' H1 profits up 6.72% on investment gains

- Monday, July 11, 2011

Private sector banks' H1 profits up 6.72% on investment gains

Private sector banks in the Dominican Republic reported 6.87bn pesos (US$181mn) in earnings in the first half of the year, up 6.72% year-on-year as investment income rose faster than funding costs, the latest figures from banking regulator Superbanco show.

Net interest income was up 12.5% to 27.7bn pesos compared to 1H10, while investment income increased 25.2% to 4.85bn pesos. Overall, financial income increased to 34bn pesos in the period, a 13% increase year-on-year.

Deposit funding costs climbed by 24% to 8.91bn pesos in the same comparison.

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The country's financial system - which includes private sector banks, savings and loan institutions, lending corporations and state-run mortgage bank Banco Nacional de la Vivienda - saw earnings rise 1.54% in January-June, to 8.26bn pesos.

The combined loan book of the 13 private sector banks rose 5.90% to 377bn pesos during the year through June, and the financial system as a whole boosted lending 6.13% to 459bn pesos.

The financial system had 797bn pesos in assets and 93.3bn pesos in equity at the end of June, Superbanco data shows.