Banks see their income fall after 3 years

Image: Expreso

Neither the reduction imposed to rates charged by loans or the cutting of tariffs for the provided services had been unavoidable. At the end of each year, profits were always in crescendo.

However, 2015, a “complicated” fiscal year, meant a sort of handicap. For the first time, at least in the past three years, banks accumulated less revenues than those of the previous year. Thus, their earnings last year totaled $ 271 million: a slip of 19% compared to their balance sheets of 2014 (334 million dollars).

This decrease has to do with the fall in deposits. Banks have less resources to grant loans, something that contracted its brokerage business. Now with this new income relapse, according to Larry Yumibanda, president of the Association of Economists of Guayas, a lower consumption and private investment is expected, two components of the Gross Domestic Product (GDP), which will aggravate the forecast (2% drop) made by the World Bank this year.

Source: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8809191&idcat=38229&tipo=2