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

Parana to raise up to US$185mn in capital

Brazilian midsize bank Paraná Banco plans to raise up to 400mn reais (US$185mn) in capital, the bank said in a filing with São Paulo stock exchange Bovespa.
The bank's board approved the program to end-December.

Paraná Banco is controlled by local holding company J Malucelli Holding, which has 72.4% of the voting stock and 41.8% of its overall shares, according to the latest Bovespa filings.

Paraná Banco recorded 19.1mn reais in third quarter net profits, falling 10.6% on the same quarter last year. The bank held 2.19bn reais in total assets at end-September, increasing 22.0% on the same time last year.

Publication: Business News Americas - English News
Provider: Business News Americas
November 7, 2008

Banco do Brasil wants to incorporate Nossa Caixa by November

Banco do Brasil (BB) is in the phase of final adjustment in its analysis of the assets of Banco Nossa Caixa, and in the coming weeks it should begin negotiating the price with the sp state government, owner of the institution that BB wants to incorportate before the end of this year, according to its president, Francvisco Lima Neto, speaking last Friday in São Paulo city, where he presented BB results for the first half of the year.

Lima Neto said that BB 'is well equipped' to begin the negotiations. The analysis of documents, numbers and information about Nossa Caixa was finished August 5. Despite acknowledging that the transaction is more complex than its incorporation of Banco do Estado de Santa Catarina (Besc) (which BB hopes to finalize in September or October) due to the volume of assets and the size of the Nossa Caixa operation, Lima Neto said that BB is working to reach an accord by the end of November. The Plan is to send the proposal to the São Paulo State Legislative Assembly, which must approve the deal, before it begins its yearend recess.

If it incorporates the Paulista bank, BB will issue stock to pay for the transaction, said Aldo Luiz Mendes, vice-president of finances, the capitals market and investor relations, who also analyzed the purchase of Banco do Piauí, a process which is still in the initial phase but which should be similar to Besc, he said. Also in the initial phase of talks is the incorporation of Banco de Brasília.

Publication: Gazeta Mercantil - OnLine News - en
Provider: Gazeta Mercantil / Investnews
Date: August 18, 2008

Banco Lemon focus consumer lending

Banco Lemon, controlled by Argentinean and Venezuelan investors, headquartered at Swiss and formerly known as Lemon Bank, is negotiating partnerships with retailers targeting credit to low income customers.

Operations began on June and as of July the portfolio reached R$1.5mil and most likely should top the initial goal of R$5mil by end 2008. General manager Gilberto Salomo, former executive with Fininvest, says the first deal was entered with the furniture and appliances retailer Hermol, with 40 stores, and also with the chains Panagon, Jumbo Moveis and others. Currently it offers financial services in 110 stores.

Publication: SABI - Business News
Provider: South American Business Information
Date: August 11, 2008