Banking declining profits profit banking system Banks bank Salvadorean Banking Association Superintendencia del Sistema Financiero (El Salvador) Banco Agrícola El Salvador Citibank Superintendent of Financial Institutions (Costa Rica) Armando Arias BAC San José Banco de Crédito Agrícola de Cartago Comisión Nacional de Banca y Seguros (Honduras)

Salvadoran Banks Reduces Profits

In March 2009, the banks from the financial system recorded profits of $22 million, compared to $34.9 million for the same period last year.

Monday, May 4, 2009

©image: Daniel Borman

Of the banks, Agricultural Bank was the one that registered the highest profits.

José Luis Henríquez Elsalvador.com wrote: "It is anticipated that with the loans contracted by the Government with multilateral organizations and the release of contingency reserves that the SSF forced banks to establish, interest rates will begin to go down gradually. Financial statements from newspapers also indicate that banks had a loan portfolio of $8.697 billion, lower than the $8.895 billion recorded by the Superintendent in March 2008."

Source: elsalvador.com

Key entities

Superintendencia del Sistema Financiero (El Salvador) Citibank Salvadorean Banking Association Banco Agrícola El Salvador

Countries

El Salvador

Insight

banking system Banks bank declining profits profit Banking

El Salvador: Banking Profits Down 63.5%

November 2009

Salvadoran banks made a profit of $43.6 million in the first 9 months of the year, $75 million less than the same period 2008.

All the banks in the system fared worse than last year, with the exception of Banco Azteca and Citibank.

"Credit was down 9%, as there were less loans granted to the private sector", reported Elsalvador.com.

Salvadoran Banking Profits Down 13%

March 2009

In 2008, banking generated $128.3 million in earnings, $19.7 million less than the $148 million generated in 2007.

The statistics reported by the Salvadoran Banking Association indicated that the Industrial Bank was the one that had the most earnings last year, but it suffered a drop of $10 million in profits.

Salvadoran Banks ask for More Flexible Bankruptcy Law

June 2010

The banking sector disagrees with a bankruptcy bill that would generally benefit debtors.

ABANSA, the Salvadoran Banking Association, has asked the SSF, the superintendence of the financial system, to introduce more flexibility in the debtor’s classification section of the bill.

Banks Earn 66% Less in El Salvador

February 2010

In 2009, Salvadoran banks earned $44.1 million, $84.2 million less than in 2008, when they generated $128.8 million.

Victor Ramírez, superintendent of the Financial System, explained that the loan portfolio shrank 6.33% when compared to 2008.

“The overdue loan portfolio increased 23.6%. Late loans increased from $257 million in 2008 to $318 million in 2009”, reported Capitales.com.

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