November 1, 2010
So far, so good. As of August, the bank was able to increase its return on average equity (ROAE) to 16.3% from 9.8% a year earlier, according to company information. It also grew return on average assets (ROAA) to 2.1% from 1.2% in the same period. These are the highest ROAE and ROAA in the Salvadoran banking sector, according to the local banking association, Abansa.
For instance, as of August, Abansa data show that Scotiabank had ROAE of 3.9% and ROAA of 0.4%. HSBC had ROAE of 6.27% and ROAA of 0.8% while Citi claims ROAE of -13.8% and ROAA of 0.2%. Moreover, according to Fitch, the average ROAE of Salvadoran banks is 6.9% and average ROAA 0.9%.
Agrícolas better performance
El Salvador’s Banco Agrícola, part of Colombia’s Bancolombia since 2007, is expected to end this year with results that compare favorably with those obtained at the end of 2009, says Fitch, which has an AA+ (stable) local rating on the bank.