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Santander, First BanCorp, Oriental Post Earnings Gains In Last Quarter

Report net income increased by 128.6%, 36.5%, and 27.5%, respectively


August 5, 2004
Copyright © 2004 CARIBBEAN BUSINESS. All Rights Reserved.

Santander BanCorp, First BanCorp, and Oriental Financial Group all reported positive financial results for the quarter ended June 30, which was the second (2Q04) for Santander and First BanCorp and the fourth (4Q04) for Oriental.

Santander BanCorp

Santander BanCorp (NYSE: SBP) reported net income of $16 million in 2Q04, an increase of 128.6% compared with the $7 million posted in 2Q03. The improvement was mainly the result of a $7.7 million increase in net interest income, a $7.7 million decrease in the provision for loan losses, and a $2.2 million decrease in the provision for income tax.

For the first six months of the year, net income amounted to $41.3 million, 238.5% higher than the $12.2 million reported during the same period in 2003.

In 2Q04, earnings per common share were $0.34, compared with $0.13 in the year-ago quarter. Return on equity (ROE) and return on assets (ROA) were 13.8% and 0.86% for 2Q04, compared with 4.42% and 0.44% for 2Q03.

Total assets increased by $1.3 billion or 19.9% in 2Q04 from $6.6 billion in 2Q03. In 2Q04, Santander’s net loan portfolio (including loans held for sale) grew by $701.4 million or 16.9% to $4.8 billion from the 4Q03 results. Mortgage loan production, meanwhile, improved by $583.4 million or 39.9%.

Deposits in 2Q04 reflected an increase of $638 million or 17% from the year-ago quarter’s $3.8 billion. As of June 30, Santander had over $11.5 billion in Customer Financial Assets Under Control, representing an $828 million gain from 4Q03. In 2Q04, the per-share price of the company’s common stock increased from $24.35 to $24.72, which translated into a $16 million increase in aggregate shareholder value.

"This performance was highlighted by results achieved without the presence of any extraordinary income gain," said Santander Chairman & CEO Jose R. Gonzalez. "Our gains came mainly from an increase in volume in loans, fee income, and securities/ asset management."

First BanCorp

First BanCorp (NYSE: FBP), the second-largest financial holding company in Puerto Rico based on assets, reported net income of $40 million or $0.72 per share diluted in 2Q04, up from $29.3 million or $0.55 in 2Q03, representing gains of 36.5% and 30.9%.

ROA and ROE were 1.19% and 20.98% in 2Q04, compared with 1.26% and 18.47% in 2Q03. For the six months ended June 30, earnings reached $80.1 million, compared with $65.7 million in the same period last year. Diluted earnings per share grew over the same period from $1.28 to $1.45.

Net interest income, First BanCorp’s main source of income, increased by 47.6% from $63.9 million in 2Q03 to $94.3 million in 2Q04. Total assets stood at $14.5 million as of June 30, a 46.5% improvement from the $9.9 million held on that date in 2003. Loans receivable went from $6.3 billion in 2Q03 to $7.9 billion in 2Q04, a 25.4% gain. The efficiency ratio for 2Q04 was 42.17%.

"Our core lending operations have continued to grow, especially commercial, auto, and residential mortgages. With the increase in long-term rates, we have been able to replenish a portion of our investment portfolio at higher yields, and the prepayments on the existing mortgage-backed securities portfolio have slowed," said First BanCorp Chairman & CEO Angel Alvarez-Perez.

Oriental Financial Group

Oriental Financial Group (NYSE: OFG) ended its 2004 fiscal year on June 30 (4Q04) with $18.1 million in net income, 27.5% higher than the year-ago quarter’s $14.2 million. The company’s net income jumped in fiscal 2004 to $63.6 million, up 24% from $51.3 million in the previous year.

Diluted earnings per share increased 10.4% to $0.74, compared with last year’s $0.67. ROE was 32.33% in 4Q04, compared with 32.06% in 4Q03, while ROA equaled the year-ago quarter’s 1.99%.

Earnings per share in fiscal 2004 were affected by a higher number of average shares outstanding. This resulted from a secondary offering of nearly two million common shares and dividends paid on a preferred stock offering.

Total financial assets managed and owned were $6.5 billion as of June 30, 2004, an increase of 13.6% from that date last year.

Total loans outstanding at the end of the fiscal year amounted to $743.5 million, compared with $728.5 million a year earlier. Approximately $228.4 million in conforming residential mortgage loans were sold in the secondary market in fiscal 2004.

Net interest income increased by 28.1% to $21.4 million in 4Q04, compared with $16.7 million in 4Q03. Oriental’s efficiency ratio in fiscal 2004 improved to 49.63% from 51.35% the year before. Stockholders’ equity, meanwhile, grew by 46.1% to $294.7 million.

"We are pleased to have exceeded our average annual earnings-per-share-growth targets despite [having] more shares outstanding," said Oriental Chairman & CEO Jose E. Fernandez. "We took major steps forward in fiscal 2004, expanding our executive team, raising fresh growth capital, and strengthening our banking & financial services franchise."

Grupo Santander Puerto Rico

Net Income in Millions of Dollars

2Q03: $7

2Q04: $16

Source: Santander BanCorp

First BanCorp

Net Income in Millions of Dollars

2Q03: $29.3

2Q04: $40

Source: First BanCorp

Oriental Financial Group

Net Income in Millions of Dollars

2Q03: $14.2

2Q04: $18.1

Source: Oriental Financial Group

This Caribbean Business article appears courtesy of Casiano Communications.
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