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January 22, 2008 |
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PARANA BANCO: 2007 Adjusted Net Income Reaches BRL113.5 Million Parana Banco has announced its results for the fourth quarter of 2007. Adjusted Net Income reached BRL113.5 million in 2007, excluding IPO expenses and including deferred commissions booked directly under shareholders' equity. This result is 117.7% higher compared to 2006. In the fourth quarter, net income was BRL36.1 million, 169% higher than in the same quarter of 2006. Total loan portfolio on Dec. 31, 2007, was BRL1.2 billion, 88.1% up on the BRL623.2 million recorded at the close of 2006. At the end of 2007, Parana Banco had 715 agreements for payroll- deduction loans. Origination of total loan operations reached BRL1.01 billion in 2007. Origination of payroll-deduction loans came to BRL873.7 million, 40% up on the BRL624.9 million reported in 2006. The Bank also acquired credits totaling BRL76.4 million from other institutions throughout the year. Franchises Created in march 2007, the Franchise Channel achieved a consolidated status as one of the main distribution channels of Parana Banco -- in addition to the traditional broker channel -- and reached the mark of 60 units in operation at the end of 2007. The channel was already responsible for 14% of Payroll Loan origination in the fourth quarter. The goal for 2008 is to reach 210 units in operation. Insurance Company On Jan. 15, 2008, the incorporation of 100% of J. Malucelli Seguradora by Parana Banco was concluded, as described in the IPO prospectus and disclosed to the market on Jan. 7, 2008. J. Malucelli Seguradora is the absolute leader in the Surety Bond segment in Brazil with 50% market share, according to SUSEP (Brazil's private insurance overseer). About Parana Banco Parana Banco -- http://www.paranabanco.com.br/ir -- is a niche bank in the segment of payroll discount lending, primarily to public-sector employees. The bank's adjusted total assets of US$375 million as of June 2006 represented less than 1% of total assets in the Brazilian banking industry. The bank is a relevant part of a broader conglomerate (J. Malucelli), with operations in different sectors and concentrated in the South of Brazil. Standard & Poor's does not assign ratings to any company in the J. Malucelli group, and the ratings assigned to the bank do not incorporate potential support from shareholders. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating and senior unsecured debt rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were removed from CreditWatch Positive where they were placed June 11, 2007. At the same time, S&P affirmed the 'B' short- term counterparty credit rating on the bank. S&P said the outlook is stable. |
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