Salvadoran Banking Profits Down 13%

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

Friday, March 13, 2009

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.

Elsalvador.com published a report which stressed that while the loan portfolio grew by 2.8%, delinquencies rose by 40%: “In 2008, the bank loan portfolio ended with a balance of $8.93 billion, an increase of 2.8 % when compared to 2007 when the loan balance was $8.69 billion.
However, the delinquency portfolio rose by 40.5% from $182.8 million at the end of 2007 to $256.9 million at the end of 2008."

More on this topic

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.

El Salvador: Credit Portfolio Shrinks 6.3%

February 2010

During 2009, the banks’ credit portfolio lost $583.5 million; it is the first reduction in 5 years.

By the end of 2009, banks had $8.6 billion in loans, down from $9.2 billion at the end of 2008.

“Armando Arias, president of the Salvadoran Banking Association (ABANSA), explained that the contraction is relative higher than the performance of the economy, which shrank 3.3%”, reported Laprensagrafica.com.

Salvadoran Banks Reduces Profits

May 2009

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.

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."

Bank credit grows in El Salvador

August 2008

Despite the tough situation in the country, banking credit grew 9.5% at the end of June 2008.

According to the latest ranking done by the Salvadoran Bank Association (Abansa), the total credit portfolio in June of 2007 was at $8.43 billion, but the bounce in economic activity allowed the portfolio to rise to $9.23 billion at the end of the first six months of this year.

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