On the verge of collapse, but not yet defaulting, Bankaool faces a severe crisis, according to an analysis of the main indicators that show it with low profitability, excessive administrative expenses, high non-performing loans and a deteriorating delinquency rate.
Steady operating losses continue to eat into the institution’s stockholders’ equity. The bank’s financial margin has been partially stagnant due to an unprofitable portfolio, which has decreased 2 percent compared to figures from the previous month, reveals the study prepared with numbers as of July this year.
This, coupled with high deposit costs (interest expenses) and excessive administrative expenses (payroll), presents a latent risk to the niche bank’s business model.
As of July 2022, the quality of the main productive assets has deteriorated compared to the previous month (June 2022). The portfolio classified as stage 2 (troubled) soared alarmingly by 3,154 percent. Although it is not yet considered non-payment, the probability that it will worsen and evolve to stage 3 (overdue) is high.
The default rate (IMOR) continues to deteriorate, reaching almost 2.9 percent as of July 2022. The default rate in the financial system is at 2.3.
The acquisition cost is out of control. Going from 4.50 percent in January 2022 to 5.70 in July 2022 (+120 bp), the bank loses competitiveness.
“The foregoing -indicates the analysis- will undoubtedly put pressure on Bankaool, possibly it will have to make its financial products more expensive, generating a greater contraction in its portfolio and loss of participation in the regional market”.
The capitalization index (ICAP) falls month by month from 14.07 to 13.78 percent. Product of constant accumulated losses, stockholders’ equity (shareholders’ capital) has been consumed against assets subject to risk.
The ICAP represents a key indicator when measuring the resilience that a bank can show against periods of stress (recessions), any fall increases the risk of insolvency and bankruptcy in the medium term.
The capitalization index improved in February of this year, moving from 14.30 in January to 14.58; however, for March it fell to 14.80, in April it reached 14.68 and bottomed out in May with 13.58, to rise to 14.07 in June and fall to 13.78 in July.
As of July 2022, its assets reached 6 thousand 658 million pesos, with liabilities of 5 thousand 765 million made up of 4 thousand 909 in deposits and 730 million in loans and others. Its stockholders’ equity fell in one year from 907 million to 893 million pesos. (From the Editorial Office / El Diario)