For the third year in a row, Banco Guayaquil remains in second place in 2023 as the most profitable financial institution in Ecuador, a position it has held since 2021.
From the end of 2015 to May 2017, it recorded single-digit profitability, but since then it has increased to 18.87% in February 2020, just before it was closed due to the COVID-19 pandemic.
In November 2023, it will reach 18.20%, according to the Datalab of the Association of Private Banks of Ecuador (Assobanca), which is based on data recorded by the Supervisory Board of Banks.
Ranking of banks in Ecuador with the highest profits in 2023
How is the level of profitability of a bank or a sector of the economy measured?
Publication Weekly analysis November 2023 indicates that “the technically correct thing to do for comparisons between industries is to analyze profit against capital employed (equity).”
This indicator is return on equity (ROE), the report added: “A higher level of profitability indicates health in economic activity, is synonymous with good governance, growth and job creation.”
Banco Guayaquil was surpassed this year only by the investment bank Citibank, which reached an ROE of 21.51% in November 2023.
Citibank remained in first place this year, after achieving single-digit ROE for most months of 2022, reaching 1.12% in July of that year.
The next positions in 2023 are the banks General Rumiñahui (14.6%), Bolivariano (14.41%) and Visionfund Ecuador (14.23%).
He ranking The ten most profitable banks of the year are rounded off by Internacional (13.75%), Pacífico (13.38%), Pichincha (12.69%), Produbanco (12.55%) and Loja (12.48%).
Banco Pacífico, whose major shareholder is National Financial Corporation, had a single-digit ROE close to 10% between February 2013 and November 2014.
It then fell below 10% again during 2016 to May 2017 and subsequently during the COVID-19 pandemic (between March 2020 and December 2021).
Banco Pichincha, the largest in the country, recorded a similar evolution. It had single-digit ROE for all of 2013 and 2016 and most of 2014, 2015 and 2017.
The average of 24 private banks is 12.43% in November 2023, 0.2 percentage points higher than in November 2022 (12.23%).
Publication Weekly analysis November 2023 indicates that “banking profitability is not the highest in the system. On the contrary, it is below the national average. While the return on equity (ROE) of the economy was 11.9% in 2022, the profitability of the banking sector was 11.5%.”
The profitability of banks has still not reached the level before the COVID-19 pandemic. In November 2019, it was 13.57%.
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Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
