NET PROFIT SLIPPED

Profit down for General

06-09-2009 | DOWN JONES

Panama Star MEXICO CITY. Panama's BG Financial Group Inc. said Monday its first quarter net profit slipped 15. 8percent largely due to lower gains from securities investments.

Net profit was $48.9 million, down from $58 million for the first quarter of 2008, the group said in a filing with the Panamanian Stock Exchange on Thursday.

Net interest income from lending and deposit operations rose 18 percent to $76.2 million, while non-interest income tumbled 50 percent to $17.7 million due to lower gains on securities investments.

Loan loss provisions rose 17.1% to $3.2 million due to souring consumer and commercial loans.

The group's assets increased 5 percent to $8.05 billion at the end of the quarter, while loans grew 9.2% to $5.44 billion. Deposits increased 9.1% to $5.75 billion. Asset quality remained steady, with the ratio of non performing loans to total loans at 0.79% at the end of March, compared with 0.73% in December and 0.92% a year earlier.

BG Financial Group had a capitalization ratio of 18.5% of risk-weighted assets at the end of March, more than double the regulatory minimum. BG Financial Group controls one of Panama's largest banks, Banco General SA. Group traded shares are down 8.4%.