Bank profits fall 44%

As predicted by the Superintendence of Banks in last January, the contraction of the profits of private banks was even higher in February this year.

In January 2013 the bank reported a decline in profits of 35%, while the value of last month rose to 44%.

Fernando Quezada, banking issues adviser, says the drop in profits was an “expected” phenomenon, after the government of Rafael Correa decreed the Redistribution of Social Spending Act, which provides the increase of the Human Development Bond (BDH for its Spanish acronym) from $ 35 to $ 50, using the profits of private banking.

Hundreds of people line up to receive their monthly Human Development Bond.

Precisely, a figure that stands out in the report of the Superintendence is the reference to the loss that three private institutions have suffered: Delbank ($ 25,000), Cofiec ($ 239,000) and Finca ($ 557,000).

Moreover, the report from the Superintendence reveals that public financial institutions in the country do record positive economic profits, except the Banco Ecuatoriano de la Vivienda, which in February this year closed with losses of $ 10 million.