At the end of 2016, profits from the Agricultural Credit Bank of Cartago (Bancrédito) were reduced to a third compared to those reported in 2015, according to information provided by the public bank to the Superintendent of Financial Institutions (SUGEF).
According to reports, in December 2015 the institution reported earnings of ¢527.6 million, while in the same month the following year the figure fell to ¢175.5 million.
The figure contrasts with that of other state banks, such as Banco Nacional and Banco de Costa Rica, which showed growth in profits compared to previous years.
Gerardo Porras, manager of the bank, explained that the deterioration in the results was caused by the adjustments they had to make for non-payment of some loans.
Bancrédito’s profits during the period 2016 were mainly affected by the non-performing state in which several loan operations fell, forcing the increase in the level of provisions, as well as a new regulation by SUGEF, which implied new quarterly estimates for more than ₡ 100 million,”
explained the manager explained to the press.
One of the measures taken to reverse this situation was the implementation of an intensive program of sale of foreclosed assets.
In addition, last October the situation of the bank was analyzed by the Economic Council, the Minister of Finance and the President of the Central Bank.
Despite this, Porras said that to date, the liquidity of Bancrédito far exceeds the levels required by SUGEF.
In recent years this entity has had to face a series of ups and downs related to the loan portfolio.
For much of 2015, the state bank showed a high delinquency rate, which they managed to reverse later that year.
The bank has its main headquarters in the province of Cartago and currently employs 769 people.