Ecuador Bank Profits Fell 38% for Jan-May Period to $99 Million

QUITO, Ecuador--Earnings for private banks in Ecuador continue to fall, with combined profit down about 38% to $99.39 million in the first five months of the year compared with a year earlier, the country's banking regulator said.

The data include profits for 24 private banks operating in Ecuador, plus state-run Banco del Pacifico.

Economists say stiff government regulations as well as higher taxes amid an economic slowdown are influencing the private banks' earnings.

According to the official report, Banco del Pichincha (PCH.GU), Banco del Pacifico and Banco de Guayaquil (BGYQY) topped the list, with $22.50 million, $14.20 million and $13.91 million in profits, respectively, in the period.

The three banks, which have 54% of Ecuador's banking assets, accounted for 51% of the reported combined income.

About 7% of the profits in January came from foreign banks operating in Ecuador, including the U.S.-based Citigroup Inc. (C), Dutch-German Procredit Bank and Panama's Promerica.

Assets in the banking system totaled $27.91 billion for the January-May period while liabilities were $25.14 billion.

Ecuador's economy likely will expand by about 4.05% this year, compared with 5.0% last year and 7.4% in 2011.

Write to Mercedes Alvaro at [e-mail]