Ecuador's Banks' February Net Profit Falls 47% to $32.88 Million

QUITO, Ecuador--Combined profit for Ecuador's private banks fell about 47% in February to $32.88 million from $61.62 million registered one year earlier, the country's banking regulator said Wednesday.

The data includes profits for 25 private banks operating in Ecuador, plus state-run Banco del Pacifico.

Banco del Pichincha (PCH.GU), Banco del Pacifico Ecuador, Banco de Guayaquil (BGYQY) and Banco Bolivariano SA topped the list, with $6.55 million, $5.50 million, $4.49 million and $3.28 million in profits, respectively, according to the report.

The four banks accounted for 60% of the reported combined income and 61% of Ecuador's banking assets.

About 9% of the profits in February came from foreign banks operating in Ecuador, which includes the U.S.-based Citigroup Inc. (C), Dutch-German Procredit Bank and Panama's Promerica.

According to official data, assets in the banking system totaled $27.55 billion in February, while liabilities were $24.75 billion.

Since taking office in 2007, President Rafael Correa has tightened controls on private banks, setting interest rates and increasing the services that banks must provide to clients for free. Those, among others measures, have affected the sector's growth and profitability, economists say.

Write to Mercedes Alvaro at [e-mail]

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