Even a cursory review of Banco Confederado’s published financial report for the first six months of 2009 confirms observations made in previous posts. This is a very troubled bank which is being kept afloat on government life-support.
However, Banco Confederado’s losses are growing despite a doubling of public sector deposits from 31 December 2008 to 30 June 2009.
The bank lost over $15.7 million at the official BsF 2.15/$ exchange rate (BsF 33,906,780) in first semester 2009 compared with a profit of $491,540 (BsF 1,056,813) for second semester 2008, according to its published financial statement for the first six months of 2009.
In the same period, the bank’s total deposits climbed to $1.17 billion (BsF 2,532,727,314) as of 30 June 2009 compared with $795.7 million (BsF 1,710,901,916) as of 31 December 2008, an increase of $382.4 million ( BsF 821,825,398) or 48%.
Most deposit categories listed in the published financial statement – checking, savings, sight, etc – fell slightly in the first six months of 2009 when compared to the second half of 2008.
However, term deposits climbed to $465.3 million (BsF 1,000,398,125) as of 30 June 2009 from $192.5 million (BsF 413,925,026) as of 31 December 2008, up $272.7 million (BsF 586,473,099) or 141.6%.
Public sector deposits in Banco Confederado totaled over $706 million (BsF 1,518,042,061) as of 30 June 2009 compared with $340.2 million (BsF 731,444,621) as of 31 December 2008, up $365.8 million (BsF 786,597,440) or 107.5% in the first six months of this year.
Banco Confederado’s investments in “titulos valores” (securities = stocks, bonds, etc) totaled $866.6 million (BsF 1,863,200,788) as of 30 June 2009 compared with $286.7 million (BsF 616,485,418) as of 31 December 2008, an increase of over $579.8 million (BsF 1,246,715,370) or over 202%.
Of the bank’s total reported investments in securities as of 30 June 2009, $436 million ( BsF 937,529,240) were listed as “available for sale,” compared with only $28.6 million (BsF 61,616,539) of securities available for sale as of 31 December 2008.
In the same period, securities held to maturity fell to $102.4 million (BsF 220,255,370) as of 30 June 2009 compared with $256.2 million (BsF 550,973,823) as of 31 December 2008.
The bank’s first semester 2009 financial statement does not identify the types of securities held by Banco Confederado. But the very sharp jump in the bank’s reported securities portfolio certainly raises questions about their real market value, liquidity and origin.
Banco Confederado reports its total assets jumped to over $1.88 billion (BsF 4,051,120,074) as of 30 June 2009 from $1.3 billion (BsF 2,800,721,530) as of 31 December 2008.
But its “cuentas deudoras” (monies owed the bank’s various unidentified creditors) were about over $1.11 billion (BsF 2.4 billion) as mid-year 2009 compared with over $1.34 billion (about BsF 2.9 billion) at end-2008.
Banco Confederado claims its total equity as of 30 June 2009 was over $201.1 million (BsF 432,423,812) compared with $73.1 million (BsF 157,250,986) at end-2008.
But the mid-year financial statement also showed the bank’s uncapitalized “patrimonial contributions” more than tripled in the first six months of this year to $219.5 million (BsF 471,940,000) compared with over $49.2 million (BsF 105,970,000) at end-2008.
It appears that banking system regulator Sudeban continues to deny Banco Confederado’s repeated requests to authorize capital increases approved by the bank’s shareholders since 2007.
Perhaps Sudeban has incompetent bureaucrats. No surprise there. Or does Sudeban, perhaps, have unspecified concerns about the origins of the funds injected by the principal shareholder, Ricardo Fernandez Barrueco?
Hard to say, but Banco Confederado’s published first semester 2009 financial report speaks for itself – if one can read between the lines.