WINNERS & LOSERS.
WINNERS & LOSERS
Scorecard of who's news in the bank rank
Percent change 1998 v. 1997 %
ASSETS
Banco Santander/ Brazil 250.8
Chase Manhattan/ Argentina 131
ABN - Amro Bank/ Brazil 69.6
BBV Banco Frances/ Argentina 68.6
Citibank/ Argentina 46.5
BEMGE/ Brazil -50.8
Banco Bilbao Vizcaya/ Brazil -50.9
Banco Meridional/ Brazil -59.2
Banespa/ Brazil -60
CCF do Brasil -60.2
LOAN GROWTH
Banco Santander/ Brazil 127.1
Chase Manhattan/ Brazil 87.4
BBV Banco Frances/ Argentina 87.4
Citibank/ Mexico 56.8
Banco Cafetero/ Colombia 47.7
FIAT/ Brazil -39.3
Banco America do Sul/ Brazil -39.5
BEMGE/ Brazil -52.1
Banco Bilbao Vizcaya/ Brazil -59.4
DEPOSIT GROWTH
Banco Santander/ Brazil 291.8
Inbursa/ Mexico 132.2
Banco Hipotecario/ Argentina 118.4
BBV Banco Frances/ Argentina 86.6
ABN - Amro Bank/ Brazil 83.1
CCF do Brazil -35.1
BBM/ Brazil -37.6
Banco America do Sul/ Brazil -38.2
Chase Manhattan/ Brazil -55.4
INTERNATIONAL INSTITUTIONS dominate the ranks of banks posting the fastest expanding assets, loans and deposits in the region. But today's gain may well be tomorrow's loss. How can this be? In Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , rapid growth is usually the single best indicator of trouble to come. High flying newcomers often overextend o·ver·ex·tend tr.v. o·ver·ex·tend·ed, o·ver·ex·tend·ing, o·ver·ex·tends 1. To expand or disperse beyond a safe or reasonable limit: overextended their defenses. 2. themselves to gain market share. Many banks in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. , for example, slammed on the breaks last year to regroup re·group v. re·grouped, re·group·ing, re·groups v.tr. To arrange in a new grouping. v.intr. 1. To come back together in a tactical formation, as after a dispersal in a retreat. after strong expansion. Overall, LATIN TRADE Latin Trade is a monthly magazine covering global business in Latin America and the Caribbean. Similar to Forbes and Fortune Magazine in coverage, the magazine was founded in 1993 and now publishes 87,000 copies 1 each month in Spanish, Portuguese, and English. Top 100 Banks posted a slight 1% drop in total assets, captured almost 7% more deposits and lent 20% more money last year, finishing 1998 with a total loan portfolio of US$434 billion. That rapid credit growth coupled with high interest rates and slow economic growth in the largest countries will take its toll on loan quality this year. Brokerage Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. & Co. forecasts that average loan default rates at the leading banks in Brazil, Mexico and Argentina will reach 11.23%, 3.52% and 3.51%, respectively, of their loan portfolios. Banco do Brasil Banco do Brasil S.A. is a major Brazilian bank headquartered in Brasília. The bank was founded in 1808 and is the oldest surviving bank in Brazil — one of the oldest of Latin America. , the region's top bank and Banco Itau (No.4), are expected to face particularly tough times with dead credits rising to 19% and almost 12% of their total credit. In this more difficult environment, banks are expected to boost reserves against bad debts and increase lending selectively to low-risk clientele. |
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