Thursday, February 5, 2009

Banks Earn 2.1 Billion

Despite the current crisis, domestic banking earned profits of Q2.188 billion or 16.3 percent of equity, according to data from the Superintendency of Banks (SIB).

For every Q100 each national bank has in capital, last year it earned an average Q16.30, according to a December 2008 report published by the SIB.

The most profitable banks were América Central (BAC) which earned Q30.85, followed by Desarrollo Rural (Banrural), which earned Q28.02

The only bank that closed the year in the red was the Bank of Antigua, with losses of Q22 million. Its general manager, Hector Morales, attributed this to the reorganization of the portfolio after the acquisition of this bank by the Canadian bank, Scotiabank

The banks in the system reported activity of Q130.777 billion and capital of Q13.428 billion.

57 percent of the assets of the banking system were dedicated to lending as of December 2008. The president of the Bank of Guatemala explained that from January to September of 2008 there was little liquidity because the government spent very little and did not inject money into the economy until the last three months of the year. But now the banks have the necessary liquidity to make loans.

In 2008, past-due loans of banks represented 2.3 per cent of the total portfolio, while in 2007 the figure was 3 per cent, and in 2006, 5.4 percent.

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