Asobanca explained that the total amount of bank profits is one of the lowest recorded in the last decade.
24 banks in Ecuador obtained profits of USD 223 million. This occurred, despite the fact that the country’s economy decreased by about 9 points in 2020. Given this, the Association of Private Banks of Ecuador (Asobanca) explained that these profits represent a contraction of 62.2% compared to 2019 .
The Executive President of Asobanca, Julio José Prado, indicated that the fall in profits in 2020 responds to the strong economic shock that the country experienced.
“Ecuadorian banking was not immune to the economic crisis derived from the COVID-19 pandemic, which hit a large number of productive activities on a global scale.”
During the previous year, all banks had an economic contraction. The most affected were small entities, which had a revenue reduction of -125%, followed by large banks with -64.1% and medium-sized banks with -56.7%.
The five largest banks made the following profits:
Banco Pichincha achieved profits of USD 50.1 million
Banco Guayaquil USD 33.3 million
Banco del Pacífico USD 30 million
Banco Bolivariano USD 29.7 million
International Bank USD 28.2 million
Diners Club USD 20.8 million
Produbanco USD 20.2 million
Banco del Austro USD 7.7 million
Banco General Rumiñahui USD 6.9 million
Banco de Loja USD 2.5 million
According to Prado, the Bank will reinvest 100% of the profits to have more resources this year, since the total amount of bank profits is one of the lowest recorded in the last decade.
“The reinvestment will allow maintaining an appropriate level of credit placement during this year and strengthening the levels of provisions.”
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