Paraná Banco records profits up 11%

More susceptible to crises, as pointed out by the Central Bank at the end of last year, smaller banks, however, are now presenting balance sheets in which their conservative positions --even if they did not always bring larger profits--at least guaranteed their structures and greater normality at the beginning of 2009. This is what can be deducted from the results of Paraná Banco, which recorded a net profit of R$ 84.1 million in 2008, up 11.1% compared to 2007 profits of R$ 75.7 million. The 2008 profit represents a return on net equity of 10.5% and an efficiency index of 42.1% per year.

"If the operations had been normal the whole year net profits certainly would have reached R$100 million," said Cristiano Malucelli, director of investor relations of Paraná Banco. In the fourth quarter profits fell 55% compared to the same quarter prior year, totaling R$ 16 million, while the efficiency index rose from 35.5% to 51.7%, up 16l.2%

Paraná Banco was prepared for the crisis lowering its leverage and ending the year with a comfortable cash situation - R$ 600,3 million -or 78.4% of total deposits, which according to Malucelli enabled the bank to maintain an efficient strategy despite market uncertainties. In June 2007 the bank launched shares on the Bovespa exchange, where it obtained nearly R$ 604 million.

'We are foreseeing a situation in which it will be possible to resume operations with more force among corporate entities, especially small and medium size companies, since now is a good opportunity," he said.

Paraná Banco is specialized in consigned credit, a portfolio which represents 91% of its operations. Last year it sold R$ 340 million of these assets to make cash. "We ended the year as one of the most liquid banks in Brazil." Credit operations in 2008 amounted to R$ 1,10 billion, down 8.3% over 2007, while total assets amounted to R$ 1,97 billion, up 5.1% c.

A J. Malucelli Seguradora, J. Malucelli Resseguradora and J.Malucelli Seguradora de Crédito (awaiting authorization from the Susep insurance monitor agency, were responsible for 27% of the profit of the bank, and he said, profits are expected to grow this year.

Publication: Gazeta Mercantil - OnLine News - en
Provider: Gazeta Mercantil / Investnews
February 6, 2009

ArcelorMittal tackles iron mining operations

Jose Francisco Martins Viveiros, executive with ArcelorMittal, is moving from London to assume as president AcerloMittal Serra Azul, the filial that would manage the iron mining operations acquired from London Mining in a US$810mil deal by mid last year. Viveiros mission is to bring iron ore production to supply 70% of the steel major needs. He will manage, in addition to Serra Azul, at Minas Gerais state, the iron and manganese operations of MPP, at Corumba (Mato Grosso do Sul), purchased last August. There are other mining exploration concessions in Bahia state, part of the Brazilian iron assets. Serra Azul should have an output of 5mil m tons of ores in 2009, of which 2.1mil exported to Arcelor's sister companies.

Expansion is tied to the evolution of the iron market and Viveiros keeps an eye in the dry metallic ton unit (DMTU) prices to base investment decisions. He ponders the uptrend in commodity prices was unexpected as well as the downtrend that now starts. Uncertainties are high and there are no tools to measure and predict what the future holds. There are other concerns to flow off Serra Azul ores, one of them is the denial by the Rio de Janeiro authorities, of the project of ArcelorMittal to have its own port terminal at Itacuruca (Sepetiba Bay) in association with Brazore (Adriana Resources). It means exports would continue via the terminal of Vale while alternatives are being sought.

Publication: SABI - Business News
Provider: South American Business Information
February 6, 2009