In the midst of the worst economic crisis since 2001, the financial sector registry exorbitant profits that can only be explained by the high interest rates that the government offers to the banks so that they do not pass the dollar. In the first quarter of this year, more than 200 percent of the entities reported year-on-year, according to a recent financial statement sent to the Buenos Aires Stock Exchange. Although some entities are reprimanding about the complex situation of the country, its income flow has not stopped growing over the past twelve months, undermined by the profitability offered by the central bank in short-term characters and interest-rate underlying for financing that They charge their clients. The only one that reduced its profits was the mortgage, which is known by the increase in home loan and corporate loan uncollectibility in the process of renegotiating its debt.
The financial sector, along with the providers of public services (water, electricity and gas), are the big-and-only winners of the economic policy of Cambio. Even in a recessive context like the current one, the constant pressure on the exchange rate exercised by the big banks allowed them to maintain a profitability that doubled – and in some cases the inflation rate of the season, which averaged 50 percent. The first quarter of this year and the same period last year. The benefit is not the result of a larger intermediation between deposits and loans, but rather the central short-term asset purchase bet.
According to the latest report by BCRA, the country's first ten banks (by volume of deposits and loans) earned 15,778.9 million Pesos last February, 40.7% above December last year, based on "financial income", for 48.896.8 million pesos. Compared to the end of 2017, the increase was 241.4 percent, compared with December 2016, which is 411.5 percent higher.
The reports sent to the Buenos Aires Stock Exchange include in March and confirm the good news for the banks. "The results of the first quarter are in line with our expectations, reflecting the anticipated slowdown for the first half of the year consistent with the macroeconomic environment," said George Ramsey Rez, CEO of the Supervisory Group, at the stock exchange report. The entity reported a net gain of 589,529,000 pesos. The result explains "51.1% of total revenues increased by a 51.2% increase in net financial income and 38.6% in services revenue." The financial income thus exceeded what is recognized by the intermediation.
The Galileo Group report reports a net result for the quarter of 9037 million pesos, 201 percent higher than the 3005 million for the first quarter last year. "The result does not consider revenues from the sale and valuation of Prism, which reached 6.103 million pesos," the entity clarifies. According to the National Commission for Defense Competition Order, a group of banks had to get rid of the credit card issuer's control in the country, giving them an extra win for the intervening entities.
BBWA Frankes Bank reported a net profit of 6007.6 million pesos. The entity clarifies that this result includes the sale of the participation of Banco Prisma Medios de Pago. Without this, the result is 3892.2 million pesos, 32.5 percent compared to the previous quarter and 151.9 in the first three months of this year, its operating income totaled 15.913.5 pesos. Million pesos, up 98.7 percent year-on-year. This year, BBWA informed the Buenos Aires Stock Exchange.
Macro reported a profit of 7,343.6 million pesos, 40 percent above Q4, and 107 percent over the same period last year. This result represents an accumulated annualized return of 50 percent on average net worth. Private sector financing grew only 1 percent compared to the previous quarter or 21 year, where business lines (documents and other loans) were stretched. The entity recognizes a volume of vacant resources – which could be inevitable in loans to the private sector for consumption or investment – of $ 52.101 billion.
Of Banco Patagonia reported a net profit of 2617.1 million pesos, which represented an increase of 170.9 percent of the 966.5 million reported in the same quarter last year. BNC Hypoterario reported a first quarter net of 36.6 million, compared to 508.2 million in the previous quarter and 519.4 million in the same quarter last year, "mainly affected by higher uncollectibility charges". "Loans in an irregular situation at a consolidated level were 6.0% in the fourth quarter of 2018 to 11.9% in the first quarter of 2019," he told the authorities of the Bolsa el Hypothario.