Revenues Down in Costa Rican Private Banks

Nine of the eleven private banks operating in the market generated fewer profits in 2010 than in 2009.

Monday, February 7, 2011

The data published by the Superintendence of Financial Institutions (SUGEF), dos not provide information on Bansol, which began operations in November 2010.

"Private banks were mainly affected by the 9% drop of the dollar in 2010, as most of their assets are in that currency," reported the article in, "Since financial statements are done in Colones, transferring their assets from Dollars into Colones results in a lower valuation due to lost value in the price of the currency."

More on this topic

Costa Rica: Banking Profits Drop 21%

October 2009

So far in 2009, profits at local commercial banks have dropped 21% in real terms.

From the entire national banking system, only 4 entities, all of them private banks, have reported real increases in their profits at the end of Setptember.

"There are two main reasons for this slowdown in the banking business: there is little growth in loan placement, and arrears have increased, forcing the banks to spend more in reserves", reported

Costa Rica: Bank Earnings Down 34%

January 2010

In 2009, banks in the country had net earnings of $190,32 million, 34% less than in 2008.

Data from banking superintendent SUGEF shows that state-owned banks fared worse than privately-owned ones. The first suffered from a 37% reduction in earnings, while the latter 28%.

Costa Rica: State Owned Banks Earn 28% Less

January 2010

From January to November 2009, earnings at state banks reached $125 million, 28.4% less than the same period of 2008.

Banks blame the economic crisis, which caused a sharp contraction in credit.

"Data from the Banking Superintendence (Sugef), also points to other factors, like increased administrative expenses, and in some cases, less earnings for services", reported

Costa Rican Banks' Assets and Profits Fall

September 2010

At the close of the first half of the year, financial groups report asset levels down 4% and profits down 8%.

One of the main reasons for the worsening picture relative to the close of 2009 is the appreciation of the colón, the Costa Rican currency.

"The change in the exchange rate has had a negative impact on the dollar value of entities' assets," comments Gabriela Mayorga for

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