Banks’ Jan-Oct combined net profit up 25%

Colombia’s financial institutions posted a combined net
profit of 4.17 trillion Colombian pesos (US$1.81 billion) in the first ten months
of the year, up 25% from the same period in 2007, the country’s banking
regulator said Friday.

Locally owned private-sector banks reported COP2.78 trillion in profits in the
January-October period, up 25% from COP2.22 trillion in the same period last
year.

The banks’ profits were boosted by the lending business. The country’s total
loan portfolio, including lending from commercial banks and government
institutions, rose 19% in October on-year to COP145.4 trillion. Microlending
posted the sharpest rise.

Meanwhile, consumer loans advanced at a slower pace as a result of the central
bank’s monetary tightening. Consumer loans rose 15% in October compared with 40%
in the same month last year, the regulator said in a press release.

Net profit at Bancolombia, the country’s largest bank, rose 38% to
COP894.5 billion in the January-October period on-year.

Banco de Bogota, the country’s second-largest bank, posted net
profit of COP566.9 billion in the first ten months of the year, up 27% from the
same period last year when it booked a net profit of COP447.9 billion.

The local unit of Spain’s BBVA reported the biggest profit among foreign
banks, posting a net profit of COP307 billion in the first ten months of the
year, up 7% from COP287.7 billion registered in the same period last year.

The net profit of the Colombian unit of U.S.-based Citibank rose 34% to
COP119.4 billion in the January-October period on-year.

The local unit of HSBC Holdings PLC reported a net loss of COP24.35
billion in the first ten months, compared to a net loss of COP34.6 billion. (Dow Jones)

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