November 1, 2009
Out of its $7 billion in assets, less than $2 billion is in loans and this amount has remained flat in the second quarter of 2009 compared with the second quarter of 2008, says Amanda Larson, an equities analyst with Raymond James. Commercial loans, which make up 17.0% of total loans, grew 17.0%, but consumer loans, making up about 2.0% of the total, are down 17.6%. Mortgages, which make up 81.0% of the total, are down 5.0%, Larson explains. Oriental is Puerto Ricos fourth largest bank in terms of assets. This has helped keep non-performing loans (NPL) in check. According to Orientals financial statements, NPLs have stayed pretty stable, dropping to 0.7% in the second
Oriental Financial Group may not be the largest player in Puerto Rico’s troubled banking sector, but by reducing exposure to consumer and mortgage loans, it emerges as the best of the worst.