Agromercantil profits rise 36% on lending growth

Profits at Guatemala's number five bank Agromercantil de Guatemala widened 36% to 100mn quetzales (US$12.9mn) for the first nine months of 2004, compared to the same period last year, according to financial system regulator SIB. Across the board revenue growth, especially from loans, was the main driver behind the double digit growth in net income during the period. The bank's net financial margin increased 11% to 220mn quetzales, while fee income soared 56% to 26.6mn quetzales. Revenues from real estate and equity investments rose 157% to 7.2mn quetzales. Administrative expenses increased 7% to 154mn quetzales. The net operating margin grew 34% to 100mn quetzales. Assets fell 1% to 4.2bn quetzales, while performing loans increased 10% at 2.2bn quetzales. The loan book was broken down as follows: commercial (23%); consumer and transfers (22%); other (17%) agriculture (14%); manufacturing (13%); financial institutions and real estate (11%). On the liability side of the balance sheet, deposits grew 2% to 3bn quetzales, broken down as follows: checking (50%); savings (35%); time (14%); other (1%). The bank's equity increased 6% to 494mn quetzales. SIB supervises 25 banks of which the top five have the following market share in terms of assets: Banco Industrial (20%); Banco G&T Continental (15%); Banco del Café (10%); Banco de Desarrollo Rural (10%); Agromercantil de Guatemala (6%).