Another Positive Assessment For BLP: Good Portfolio Quality And Stable Funding Structure

Another Positive Assessment For BLP Good Portfolio Quality And Stable Funding Structure

Another Positive Assessment For BLP Good Portfolio Quality And Stable Funding Structure

Banco de La Pampa SEM, received this month from FIX SCR, the financial rating A1+, the highest possible for short-term indebtedness; a situation that reflects the comfortable levels of liquidity of the entity, accompanied by its adequate and stable funding structure.

This agency prepares reports and forecasts for the credit markets that take into account the payment capacity of the different organizations in the financial system to meet their obligations in a timely manner.

In the March 2022 Report -published in July-, for the first time and after 17 years, the rating of Banco de La Pampa was increased from A1 to A1+. In this way, it shares a score with other entities such as BNA, Banco Ciudad de Buenos Aires, BBVA and Banco Galicia.

The A1+ valuation indicates a particularly solid capacity for payment on time and in due form by Banco de La Pampa SEM of its financial commitments.

Additionally, its strong position in its area of ​​influence, its very good performance, portfolio quality, adequate capitalization and technological improvements that contribute to cross-selling growth and efficiency were considered.

This evaluation arises not only from qualitative issues such as those mentioned, but also from quantitative ones, based on the financial statements as of December 31, 2021 and March 31 of the current year.

 

PORTFOLIO GROWTH

The year-on-year growth of the loan portfolio was 73.2%, higher than the market average, corresponding almost entirely to financing for the private sector. For its part, the irregular portfolio represented 1.9% of total financing, highlighting a very good coverage of provisions, even above those required by the BCRA and a prudent atomization and credit evaluation. A drop in administrative expenses of 11.6% in real terms was also observed.

Finally, one of the most relevant points is given by the ample liquidity and adequate funding. Liquid assets represent a significant percentage of deposits and financial liabilities of less than one year. Meanwhile, the main source of funding is made up of deposits (80.5% of assets), where 73.0% corresponds to private sector deposits.

 

PROFITABILITY AND CREDIT POLICIES

In summary, the profitability ratios are in line with the credit policies implemented by the Bank during the pandemic, where it carried out various actions to collaborate with its customers, which, after the term of cost rebates, result in a genuine generation of income.

This increase in rating by FIX SCR occurs in a context of expansion of services, both in customer service locations and ATMs, in which La Pampa has coverage greater than 95% of the locations, compared to 42% coverage registered at the national level.

Complemented by promotional actions aimed at the entity’s more than 110,000 packages, such as the Promotion of Nearby Affiliated Businesses for Father’s Day, in which promotional sales were achieved for more than $500 million and the offer of loans for $2,000 million at 29% favoring consumption and the provincial economy.

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