Banking profits rise 50% on higher revenues

Profits in the Honduran banking industry increased 50% to 784mn lempiras (US$42.2mn) in the first nine months of the year, compared to the same period a year ago, according to statistics released by financial system authority CNBS. Profits growth was driven by an increase in interest earning assets. The net interest margin increased 14% to 3.5bn lempiras. Non-interest income - commissions, leasing and other sources of operating revenues - increased 23% to 1.1mn lempiras. Administrative expenses increased 12% 3.7bn lempiras. Operating income widened 42% to 900mn lempiras. Assets increased 19% to 100bn lempiras, with performing loans growing 15% to 42.4bn lempiras. Deposits rose 17% to 60.3bn lempiras, broken down as follows: checking (21%); savings (47%); time (30%); and other (2%). Equity grew 18% to 7.8bn lempiras. The sector's ROA was 1.3% for the nine-month period ending September 30, 2004, up from 1% a year ago. Non-performing loans stood at 3%, compared to 3.4% last year. CNBS supervises 16 banks of which the top five had the following shares in terms of assets: Banco Atlántida (15%); Banco Grupo el Ahorro Hondureño (15%); Banco de Occidente (13%); Banco Financiera Comercial Hondureño (12%); Banco Mercantil (10%).