Megabanco boosts Jan-Aug profits 65.8%

Colombian consumer loan bank Megabanco boosted its net profit 65.8% to 12.3bn pesos (US$4.3mn) during the first eight months of the year, compared to the same year-ago period, the bank said in a statement. The positive result was due to strong interest income from Megabanco's consumer loan portfolio and to a "cleaner loan book" than last year, a bank official told BNamericas. The bank's bad loan ratio stood at 3.62% at the end of August. Megabanco is set to continue to increase its profit at the same rate throughout the rest of the year, the official said. The bank invested 6bn pesos in a new corporate image in August, targeted to strengthen Megabanco's market position and have a positive impact on the bank's year-end results, he added. The bank caters mainly to low-and middle-income individuals and small business owners and those segments have a significant growth potential in Colombia due to low bank penetration in those segments, the official said with respect to the bank's growth perspectives. Megabanco had assets and equity totaling 1.9Trn pesos and 107bn pesos, respectively at end-August. The bank has a nationwide distribution network of 218 branches and 258 ATMs.