Argentina's Banco Frances Sees Loan Growth Slowing To 25% In 2012
May 14 2012 - 12:21PM
Dow Jones News
Argentina's BBVA Banco Frances SA (BFR, FRAN.BA) said Monday it
expects its loan portfolio to grow about 25% this year, after
increasing almost 49% in 2011.
Argentina's economy is widely expected to grow at a
significantly slower rate this year than the 8.9% logged in 2011.
At the same time, most private sector forecasters see inflation
staying above 20%.
The bank's investor relations director Cecilia Acuna said in a
conference call Monday that loan loss provisions going forward will
probably be slightly lower than the 58.9 million pesos ($13.2
million) reported in the first quarter.
Loans to the private sector, which represent the bulk of the
bank's overall credit portfolio, increased almost 42% on the year,
to ARS23.15 billion at the end of March. Automobile and personal
loans accounted for much of that growth.
Asset quality as measured by non-performing loans as a
percentage of total loans was unchanged on the year at 2.47% as of
March 31.
Banco Frances reported first-quarter net profit of ARS240.5
million on Friday, up 23% from the first quarter of 2011 thanks to
higher revenue from lending and fees.
The bank's bottom line also got a boost from the sale of its
corporate headquarters and an insurance subsidiary.
The net financial margin--the difference between what the bank
pays on its deposits and earns on its loans and securities
holdings--jumped 55% on the year, to ARS777.9 million in the
quarter.
Net fee income rose 37% to ARS417.2 million.
Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA) owns a
controlling interest in Banco Frances, which operates 268 branches
and 654 ATMs.
Banco Frances's stock was recently trading 1.2% higher at
ARS8.50 in Buenos Aires.
-By Ken Parks, Dow Jones Newswires; 54-11-4103-6740,
ken.parks@dowjones.com
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