QUITO, Ecuador--Combined profit for Ecuador's private banks fell
35% in January, to $20.16 million, from $30.99 million registered
one year earlier, the country's banking regulator said Monday.
The data includes profits for 25 private banks operating in
Ecuador, plus state-run Banco del Pacifico.
Banco del Pacifico, Banco de Guayaquil (BGYQY) and Banco del
Pichincha (PCH.GU) topped the list, with $4.09 million, $3.02
million and $2.24 million in profits, respectively, according to
the report.
The three banks accounted for 46% of the reported combined
income and 53% of Ecuador's banking assets.
About 10% of the profits in January came from foreign banks
operating in Ecuador, which includes the U.S.-based Citigroup Inc.
(C), Dutch-German Procredit Bank and Panama's Promerica.
According to official data, assets in the banking system totaled
$27.29 billion in January, while liabilities were $24.50
billion.
In January, a law to increase taxes on the banking sector came
into force. The law was approved in order to finance a 43% increase
of the so-called human-development bond, which since January
provides a cash payment of $50 a month to some 1.9 million
individuals living in poverty.
Economists say the measure will affect the banking sector's
growth and profitability, as well as lending. This could, in turn,
lead to a slowdown in the economy and jeopardize the health of the
financial system, economists say.
Since taking office in 2007, President Rafael Correa has
tightened controls on private banks, setting interest rates and
increasing the services that banks must provide to clients for
free.
Write to Mercedes Alvaro at mercedes.alvaro@dowjones.com
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