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Banesco USA’s Positive First Semester Financial Results and Proactive Risk Management lead Fitch to Affirm its Ratings
MIAMI–(BUSINESS WIRE)–Despite the significant negative impact of the COVID-19 pandemic on businesses and households, Banesco USA reported strong 2020 first semester results including an 18% increase in total assets to $2.02 billion, a 7% increase in total gross loans, and an 11% increase in total deposits. Additionally, the Bank reported $7.4 million pre-tax operating income (excluding gains from sales of investments and loan provisions), a 36% year-over-year increase, and $5.3 million in net income despite setting aside $5.0 million in extraordinary general COVID-19 reserves. Although the economic outlook remains uncertain, the Bank is well-positioned to meet future challenges that may arise.
“The pandemic has brought us even closer to our customers. Being available and receptive to them has been a priority. We are operating in challenging times and I am proud of how our team has come together to help our customers and communities by ensuring small businesses secured loans through the Paycheck Protection Program (PPP), promoting our digital channels that allow customers to bank virtually, and working with customers impacted by the economic slowdown,” said Mario Oliva, President & CEO of Banesco USA.
“Our business performance remained strong in the first semester due to the disciplined execution of our strategy while implementing proactive risk management practices,” Mr. Oliva continued. Banesco USA’s strategic plan continues to focus on the diversification of its loan portfolio and the scaling of business while improving efficiency and implementing digital transformation to provide a modern customer experience.
On August 18, 2020, Fitch Ratings affirmed Banesco USA’s long-term rating at BB- and removed the negative rating watch, stating that “…[it] is Fitch’s view that Banesco USA [(“BNSC”)] has so far managed these risks reasonably well, positioning the Bank to be less sensitive to changes in interest rates earlier in the year. In addition, the Bank has proactively managed credit risks with heightened credit monitoring, and has lowered exposures as warranted.” Additionally, Fitch stated that “Fitch views BNSC’s successful integration of Brickell Bank positively. The integration was completed in 2H19. Fitch notes that BNSC completed the integration on the projected timeline, with little evidence of distraction or disruption to normal business operations. The acquisition was the first for the Bank in a number of years and supports Fitch’s view of management’s ability to execute. Fitch also notes that capital levels returned to prior levels shortly after its completion, addressing a rating sensitivity previously highlighted by the agency, concerning the restoring of capital to pre-acquisition levels.”
About Banesco
Founded in 2006 and based in Coral Gables, Banesco USA is an independent Florida state-chartered bank with $2.56 billion in assets as of June 30, 2022. The bank has four branches in South Florida: Coral Gables, Hialeah, Aventura, and Brickell; and one in San Juan, Puerto Rico. A location in the Doral area is coming soon. Visit BanescoUSA.com for additional information.
Contacts
Natalia Arana
narana@banescousa.com
786-552-0576
