Only six banks of 25 financial entities in the country increased their profits to July of this year

The profits of the 25 national and foreign banks operating in the country reached an accumulated $ 3.53 trillion at the end of July this year, that is, 42.5% below the levels registered during the same period of 2019 , when the profits of these entities were located at $ 6.14 trillion, according to data from the Financial Superintendence.

In the midst of this fall in profits, six of the 25 banks operating in the country ended July with growth in their profits: Banco Credifinanciera (740.4%), Banco Santander de Negocios Colombia (128.4%), Citibank (83 , 8%), Banco Pichincha (36.4%), Coopcentral (18.4%) and Banco Serfinanza (2%).

Credifinanciera Bank It is the one with the highest increase in profits, not only within the segment of national banks, but in general. At the end of the first semester, this company was also the one that registered the most an increase in its profits, which occurred after the Superfinanciera approved its creation, which occurred after the union with ProCredit.

While the banks that marked the reduction in profits for the seventh month of the year compared to the same month of last year were Itaú Corpbanca Colombia, with -681.8%; Banco Compartir, with -382.1%; Scotiabank Colpatria, with -150.5%; Banco Multibank, with -100.0%; and Banco Caja Social, with -76.4%.

Next are Davivienda (-58.3%), Bancamía (-48.2%), Banco Finandina (-43.9%), Bancoomeva (-42.0%), Banco de Occidente (-35.4% ), among others.

The previous data led to the fact that between January and June of this year, not only foreign banks registered a drop of 89.9% in terms of profits, but national entities also recorded a decrease in this of 32.4%, from According to the recent report of the Superfinanciera.

Pedro Preciado, leading partner of Financial Services at Kpmg in Colombia, highlighted that the profits of the credit establishments continue to suffer because the income is caused, but their collection is uncertain and the growth of new loans is not close to those budgeted by these establishments previously.

Another reason that is negatively impacting the companies’ earnings has to do with “the payment behavior of the debtors and the grace periods granted by financial entities, which end up affecting the deterioration of the portfolio by increasing the level of provisions. “Added Preciado.

Despite the fact that circumstances such as the previous ones have been hitting the profits of the banking entities in these months, these companies registered a recovery of $ 689,413 million in terms of profits when comparing the consolidated figures of June with those of July of this year, since they went from $ 2.6 trillion to $ 3.58 trillion.

David Nieto Martínez, teacher and coordinator of the financial area of ​​the Faculty of Economic and Administrative Sciences of El Bosque University, highlighted that this improvement in profits as of July is due to the measures adopted by the entities and the different support that the National Government, this has allowed maintaining a stable relationship in terms of compliance with a large part of the obligations acquired by third parties.

In line with this, Alfredo Barragán, an expert in banking at the Universidad de los Andes, assured that the increase in profits could be due to the fact that the entities are taking measures that allow them to recover income from collection of other concepts. However, they have not had significant disbursements that guarantee a relevant increase.

Based on this context, Barragán assured that “it is most likely that this year the banks will not be able to recover. If they were to record notable profits, it would be because a good part of last year’s profits would save this one. They are expected to recover by the end of 2021 ”.

The profits of the financial system
The Financial Superintendency revealed that the general profits of the financial system reached $ 8.5 trillion at the end of July of this year, that is, $ 50.2 trillion less than what was recorded during July of the previous year, when profits were $ 50.6 trillion. .

The sectors that marked this collapse were pensions and severance pay, which recorded a loss of $ 2.8 billion; that of securities intermediaries, with a fall of $ 1.7 trillion, and the Sedpe with a collapse of $ 19,653 million.

While credit establishments reached $ 4.6 trillion at the end of the seventh month of this year. Of this total, 66.2% correspond to the net interest margin, financial services, term operations and investments participated with 4.9%, 8.7% and 18.8%, in their order.

This is how the behavior of collection progresses in the financial system
According to the Superfinancial, “as the grace periods have been gradually ending, the financial entities have reactivated the payments suspended during the economic emergency (…). Thus, as of August 2020, the percentage of the portfolio collected with respect to the gross balance reached 5.33%, a figure higher than that registered at the end of June when it represented 3.76%, although lower than the ratio reached at levels prior to the covid-19 pandemic “.

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“With the TVS Motor Company portfolio we hope to cover 90% of the motorcycle market”

Lina Vargas Vega – lvargas@larepublica.com.co

Starting this month, the distribution alliance between Auteco and Bajaj ended and the Indian brand will be distributed in Colombia by the UMA Group. While the contract was signed, Bajaj motorcycles were the best-selling motorcycles in the country until May, when Yamaha was positioned as the leader in this market, according to records from the National Association for Sustainable Mobility (Andemos). By January, the country’s leader accounted for 23.4% of the motorcycles sold, while for August, Bajaj, in second place, held 19.4% of this market.

To continue with the broad participation in the Colombian market, Auteco signed an assembly and distribution contract with TVS Motor Company, and Carlos Durán, president of Auteco, spoke about the reasons for breaking relations with Bajaj, how they plan to regain leadership in the industry and your expectations with the new brand.

What does it mean to you to stop distributing Bajaj?

We represent the Bajaj brand in Colombia for more than three decades. During the last years and especially in the pandemic, we sat down to talk with them to re-evaluate the negotiation we had, the distribution contracts that were structured 30 years ago and the claims that Bajaj had did not allow the company to be sustainable in the long term . For this reason, it was strategically decided not to continue with its distribution.

For us this is part of an equation that had been defined almost five years ago of a risk that existed in this alliance, therefore it is not a representative loss.

Bajaj did not leave us, we left Bajaj because we are looking for a long-term business, we firmly believe that we can repeat that success that we had with Bajaj for 30 years, with a brand that has the credentials to be as important in Colombia as it is in the world.

Why sign with TVS?

We are satisfied because as of September we have signed an alliance with TVS, one of the companies with 120 years in the industry, a presence in 60 countries, one of the five main players in the market, and which offers Colombia a completely renewed, leveraged portfolio in innovation and quality, with which we will be able to offer our customers not only street motorcycle products, but also electric motorcycles, scooters, automatic and semi-automatic motorcycles; and motocarros, which will undoubtedly allow us to have the largest portfolio in the Colombian industry in January 2021.

Today we compete in the market with 55% of street motorcycles, with the entry of this new portfolio, we will be competing in the 90% market.

How did the market perform during the pandemic?

The market since the pandemic has contracted mainly due to credit limitations, 30% of motorcycles are sold with credit. The industry has contracted 25%, compared to last year, when we grew 11%. In January and February we were generating a 22% growth, the following months we reported a decrease compared to last year, when we sold 150,000 motorcycles.

What was the motorcycle line that moved the most during the pandemic?

Bajaj is the most representative line of the company, we have recovered the turnover in an average of 10,000 motorcycles per month but with the average of last year that we were selling between 13,000 and 14,000 motorcycles, it is a significant decrease. The other two brands in our portfolio, KTM and Husqvarna, have maintained a growth rate of 40%, which allows us to anticipate that they will have a good movement in the market. They are in high demand after the pandemic.

What has been affected is innovation due to the effect of covid-19 and the launches that we had planned for this year have had to be postponed a bit until the last quarter of the year, however we are confident that when these new motorcycles arrive By the end of the year we will have regained the leadership we had in the high-end category.

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In 2021, the Kertosono-Kediri Toll Land Acquisition Execution Begins

JAKARTA, KOMPAS.com – PT Jasamarga Ngawi Kertosono Kediri (JNK) will start land acquisition Street Toll Kertosono-Kediri in early 2021.

Currently, road construction tolls has entered into submission location determination ( penlok) from the Governor East Java.

PT JNK President Director Arie Irianto said his party had received approval for the review Right of Way (ROW) last August.

“After the marking is complete, we will pursue approval for the Final Engineering Plan (RTA) which will be followed by the land acquisition process,” said Arie in a press release, Wednesday (23/9/2020).

Highway Kertosono-Kediri is an extension of Jalan Toll Ngawi-Kertosono. The approval of the additional scope has been confirmed in the addendum to the Toll Road Concession Agreement ( PPJT) last year.

Also read: Astra Officially Working on Access Toll for West Java Kertajati International Airport

The plan is for the Kertosono-Kediri Toll Road to have a total length of 20.3 kilometers with an investment cost of Rp. 3.9 trillion.

Highway this will be complemented by one junction (Kedungsoko) with Ngawi-Kertosono Toll Road, as well as two interchange which is located in the Regency Nganjuk and Kediri Regency.

In addition, the Kertosono-Kediri Toll Road is planned to have two Toll Gates (GT), namely the Sugihwaras GT and the Kediri GT.

Arie continued, the Kertosono-Kediri Toll Road will also be connected to Kediri airport which is being built.

The toll road connected with the Ngawi-Kertosono Toll Road has a total length of 108 kilometers.

JNK targets, all stages go according to the target so that it is expected physical development The Kertosono-Kediri Toll Road will be completed in 2023.

“If things go well, then implementation construction can start in the middle of next year and is expected to operate as a whole according to the target, namely, in 2023, “concluded Arie.

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JP Morgan will operate as a commercial bank upon request to the Superfinanciera

Paola Andrea Vargas Rubio – pvargas@larepublica.com.co

After the end of last month, the Financial Superintendence of Colombia reported that JP Morgan Corporación Financiera had filed a request for conversion approval to obtain the banking license in Colombia. The financial superintendent, Jorge Castaño, assured that the license requested by JP Morgan is to operate as a commercial bank.

In turn, Castaño said that this is not the only entity that is in process, since BTG Pactual has already filed its request and four financing companies are coming, which are Mercado Pago, Scotiabank-Colpatria, Ualá and Banco Santander.

According to Castaño, it is expected that these requests will be answered by December of this year.

This shows that the country’s financial system is betting on dynamism and is opening up to consumers the possibility of finding more options that allow them to choose the services and products that best suit their needs in the midst of a secure scheme, said Castaño.

News in development …

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Leaked documents showed that Hsbc allowed the fraudulent transfer of millions of dollars

Financial Newspaper – Santiago

The bank, the largest in the United Kingdom, moved the money through its business in the United States to HSBC accounts in Hong Kong in 2013 and 2014, according to the confidential file.

The documents were leaked to the Buzzfeed portal and shared with the International Consortium of Investigative Journalists while the British investigative program Panorama led the investigation for the public channel BBC.

That chain indicated that the uncovered files detail what the role of that bank was in an investment fraud valued at US $ 80 million.

HSBC has always maintained that it complied with its legal obligations when reporting such activity.

The documents also show that the investment scam – known as the Ponzi scheme – began shortly after the British bank was sanctioned with a fine worth US $ 1.9 billion in the United States for money laundering operations and has since committed to eradicate such practices.

According to the BBC, lawyers for some of the investors who were duped in these operations considered that the entity should have taken steps earlier to close the accounts of the fraudsters.

The FinCEN files are 2,657 documents, including 2,100 Suspicious Activity Reports (or SARs), which include information on transactions that raise suspicions in the banks themselves.

They send these reports to the relevant authorities if they suspect that their clients are engaging in illicit activities and if they have evidence of criminal activity practices they should stop moving their money.

The leak shows how money was laundered by some of the world’s largest banks and how criminals used anonymous British companies to hide the money.

Fergus Shiel, part of that consortium, indicated that the files provide knowledge about “what the banks know about the vast flows of dirty money circulating around the globe.”

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These are the oil companies interested in the fracking pilots that will be enabled in 15 days in the country

Kevin Steven Bohórquez Guevara – kbohoquez@larepublica.com.co

In approximately two weeks the National Hydrocarbons Agency (ANH) will open the qualification phase for companies interested in fracking pilots. It will be a new process in which the entity will analyze several proposals, with the aim of defining who will be the contractors that will develop the entire research process in two key basins of these deposits: Cesar – Ranchería and Valle Medio del Magdalena.

The new call, which is expected to be defined no later than November 23 – the day on which the contracts will be awarded – will be the starting point for interested oil companies to formally begin work with the communities, their relationship in the territories and the Application for the environmental license before Anla.

Although not all those interested in the process are known yet, industry sources pointed out that there are already several market players who have shown interest in the development of pilot projects for comprehensive research (ppii). It is, in fact, Ecopetrol, ExxonMobil and ConocoPhillips, which have already been preparing in recent months to carry out all the research in these two basins.

Ecopetrol, for example, has already shown interest in the Middle Magdalena Valley. “We are attentive to participate in the competitive process that the ANH has announced for the allocation of Special Contracts for Research Projects (Cepi) for the development of Pilot Projects for Integral Research (ppii), for which we are waiting for the definitive terms of reference that establish the contractual conditions, ”said Ricardo Gómez, vice president of unconventional deposits at Ecopetrol.

The manager stressed that they have estimated to make investments of up to US $ 127 million for the Ppii. “The times will depend on what is established in the regulation, but, as we have said before, the important thing is not to do it quickly, but to do it well,” he added.

ExxonMobil, for its part, is finalizing the details to finalize its alliance with Ecopetrol. At press time, the company did not answer a series of questions from LR. However, Gómez stressed that they are “working on the consolidation of that alliance that, if achieved, would allow us to have the experience of one of the largest companies in the world and with the greatest experience in the operation of unconventional deposits.”

Another of the companies is ConocoPhillips Colombia, which, under the command of Álex Martínez, country manager, has carried out important work with the communities where it operates for a long time. In fact, Martínez confirmed to LR a few months ago (before the pandemic) that they were analyzing investing US $ 100 million in two pilots.

“Although preliminary calculations by the ACP indicate that for the comprehensive pilot research projects an initial investment will be required for the exploratory phase of around US $ 650 million in the first years of the projects, the value of the investment would be determined by the regulations definitive, the requirements regarding projects and wells for the evaluation of the technique, and the complexity of the fulfillment of the requirements that they stipulate ”, highlighted Francisco Lloreda, president of the ACP.

Carlos Leal, president of the board of directors of Acipet, highlighted that, for now “if the award is given in November, it would be expected that from the second half of 2021 drilling of the wells would begin.”

This is the schedule of the call

Specifically, the ANH explained that there will be three phases in the schedule before the day of awarding the pilot contracts. Between October 5 and 9 will be the presentation of the documents to obtain the authorization of the participants, while the 29 of the same month will be the presentation of proposals. Thus, from November 23, contracts will be signed, which, according to the entity, will be under the framework of a Special Research Project Contract (Cepi), which will be signed under a consortium or only the company that remains with the assignment.

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The Colombian company Auteco and TVS Motor Company consolidate distribution alliance

Lina Vargas Vega – lvargas@larepublica.com.co

Auteco, the motorcycle assembly brand that sells a third of the motorcycles registered in the country, will expand its portfolio thanks to its alliance with TVS Motor Company, the manufacturer of two- and three-wheeled vehicles.

With the union, it is expected to increase the supply of semi-automatic, automatic, motorcycle and electric motorcycles and to further expand the portfolio of street motorcycles in the 600 Auteco points of sale.

The alliance includes the assembly service at the Cartagena and Itagüí plants of the Colombian company, and the use of a specialized training center.

R Dilip, TVS Executive Vice President of International Business, stated “We are delighted to expand our presence in Colombia with a company with extensive experience in the region and that shares our customer-focused corporate value.”

For his part, Carlos Durán, president of Auteco, said about the alliance “with TVS we have a greater capacity to produce mobility solutions that Colombians need.”

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Pfizer CEO Says US Could Receive Covid Vaccine Before Year-End

Pfizer Inc. CEO Albert Bourla said the US is “likely” to roll out a COVID-19 vaccine to the public before the end of the year and that the company is prepared for that scenario, rejecting shared lukewarm expectations. by health authorities.

Bourla said on CBS’s “Face the Nation” Sunday that he is “quite comfortable” that the vaccine the company is developing in partnership with BioNTech SE is safe and that it could be available to Americans before 2021, depending on approval. from US regulators at the US Food and Drug Administration.

“I can’t say what the FDA will do,” Bourla said. “But I think it is a likely scenario and we are preparing for it.”

New York-based Pfizer and Germany’s BioNTech are considered pioneers in the race to develop a coronavirus vaccine, along with Moderna Inc. and AstraZeneca Plc. Bourla said that Pfizer and its partner have a 60% chance of knowing the efficacy of their still experimental vaccine by the end of October.

“Of course that doesn’t mean it works; that means we’ll know if it works, ”Bourla said. Timing of clinical trial results depends on enough people in the study getting Covid-19 to make a calculation. But the positive results could clear the way for approval, he said.

Bourla’s guarantees come just as Pfizer and BioNTech have expanded the number of clinical trial participants they are looking to include more people with diverse backgrounds.

Extended enrollment
The companies said in a statement Saturday that they hope to enroll the 30,000 patients they originally sought for their final phase clinical trial this week. They are also expanding that target to 44,000 participants to include people as young as 16, and to allow people with HIV and hepatitis B and hepatitis C.

Bourla told CBS that they will also focus on recruiting more people of color, including African Americans and Latinos, for the final stage of the trial in the coming weeks. She said the study participants are currently 60% white and 40% people of color, with older volunteers making up 44% of the cohort.

The companies joined other vaccine developers last week in an unusual commitment to submit applications to the FDA for vaccine approval only when the drugs have been shown to be safe and effective in large clinical trials. That followed concerns that President Donald Trump is pressuring the agency to make cuts to bring a vaccine to market before the Nov.3 election.

Bourla said part of the reason Pfizer didn’t accept taxpayer money to fund research and development for the Covid-19 vaccine was to avoid red tape and government influence. “I wanted to keep Pfizer out of politics,” he said.

Political pressure
Trump has said publicly that a vaccine could be licensed for the November election even though other top US health officials, including National Institutes of Health Director Francis Collins, have said they believe closer to the end of the year is more realistic. Even then, there won’t be enough vaccines available to cover most Americans until well into 2021.

Former FDA Commissioner Scott Gottlieb, who also spoke on CBS, said it is “atypical” that the approval process for any drug or vaccine is debated in a political context.

“I don’t think we’ll see an authorization before the election,” said Gottlieb, who sits on the Pfizer board of directors. He added that American’s distrust of a covid-19 vaccine will likely dissipate after the election.

The former FDA chief said he hopes most Americans will not get vaccinated until 2021 or later.

“This is likely to be a very tiered entry to the market,” Gottlieb said. He outlined a process in which regulators will first issue an emergency use approval that will provide a limited supply of injections to people at high risk of infection, including front-line workers. Then the FDA will “slowly reduce that approval” to make it more available, Gottlieb said.

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Contactless payment for watches is the new from Bancolombia in association with Mastercard

Paola Andrea Vargas Rubio – pvargas@larepublica.com.co

Bancolombia in alliance with Mastercard developed a new payment method that uses NFC (Near Field Communication) technology, which allows the exchange of data between contactless devices, with some means of payment such as cards, wristbands and stickers.

With this commitment by both companies in the financial sector, consumers will be able to pay without contact via smart watches. Bancolombia customers can make use of this option at no additional cost.

According to information shared by Bancolombia, “the operation will be available, initially, in the models of Garmin devices that have such technology. In them, people will be able to configure the information of their Mastercard Debit and Credit cards. After that they will be able to pay in store dataphones without the need to have your cell phone or a Wi-Fi connection nearby: it will be as simple as pressing the Garmin Pay option on your watch, entering a password or PIN on it and bringing your wrist to the dataphone “.

This new bet by Bancolombia and Mastercard Their purpose is to continue providing customers with greater innovation and greater security when carrying out any transactions. To this is added that this new payment method comes at a time when people are betting on contactless payments due to the covid-19 pandemic.

Regarding this, Cristina Arrastía, Vice President of Business at Bancolombia, “this new alternative reinforces the entity’s payment and collection ecosystem, which today offers its clients ways of trading according to their preferences and lifestyle, from the payment of invoices through the People App, automatic debits, the QR Code to transfer the cost of purchases in small businesses, to cards for payment in the physical world and online “.

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Angolan Omatapalo denies accusations of being State company – Angola

The chairman of the board of directors of the Angolan construction company Omatapalo denied this Sunday to Lusa that it is a “State company” and that it benefits from direct awards, as is accused, but rather “its partner”.

“We are not benefited in anything, we are a partner of the State, as we always have been and will be, and where we are, we do so, not only in Angola, but in other countries. Whenever it is necessary to respond to any challenge, we do it” , said Carlos Alves.

The official stressed that the company works with those who want its services and, like other national and international companies that have capabilities, is always available and subject to having simplified contracts.

“But, the simplified hiring process does not mean that it is a direct award because consultations and tenders are made,” he explained.

In addition, Carlos Alves emphasized that Omatapalo is a company that “has installed capacity, very large mobilization capacity, complies with the rules and rules and has all the necessary certifications”, which means that, when there are emergency works that State needs to make and which are investments of interest, be it one of the companies that can be consulted, as well as others in the same sector.

As an example, the administrator recalled that Omatapalo executed, by simplified contracting, the Luanda Arena for the World Hockey Championship, in 2013, building three sports infrastructures, one of them the Luanda multi-purpose pavilion with 12 thousand seats in nine months.

“No competitor or colleague accepted this challenge and we accepted and did it with quality”, he stressed.

Regarding the connection between the construction activity and several corruption scandals in Angola that have been reported, the administrator rejected making comments for “not being knowledgeable enough”, understanding that it is a matter of the Attorney General’s Office.

Mining sector in sight

Carlos Alves also admits the company’s entry into the mining sector. “There are talks, yes, we have many mines in Angola and it can happen at any time, as long as it is an asset for us, for the State and for the partners that can integrate the project”, he assumed.

Saying that the interest in this sector is not from today, but from “some years ago”, the official said that Omatapalo will want to explore this business area, and should be a reality “shortly”, predictably at the beginning of next year. .

The company is working and analyzing several projects, having had meetings on the possibility of integrating some, but there is still nothing concrete, he guaranteed.

Carlos Alves said he is studying investments in which he can bet capacity, in which he can improve performance and what is more interesting for the group.

“We are always available and we analyze all projects that can bring added value to the group and the State”, he said.

The mining area has “enormous potential”, hence the interest of Omatapalo and other companies, he added.

But, in addition to this new business area, Omatapalo has invested in others, despite the fact that its main line of activity is civil construction, namely in the agricultural, industrial, metalworking and environment sectors.

“We are investing heavily in the area of ​​wood and carpentry, an area in which we thought to double the company’s installed capacity by the end of the year. We believe we have a complete unit in Luanda for the production of office furniture and sofas, among other products, for that, we are acquiring new facilities that will allow us to have these capabilities “, he said.

In metalworking, a sector it already operates, the Angolan company is building a new unit in Luanda, given that the main unit is installed in Lubango, far from the capital.

In agriculture, Omatapalo is “intensifying” investment in Fazenda Mumba, dedicated to the production of beef, to have it fully operational in 2030, said the businessman.

The company is also in the process of negotiating a consortium for the construction of the Cabinda refinery.

In Portugal, where the company is expanding and has several real estate projects in its portfolio, Carlos Alves revealed that he is creating a research and start-up center.

Should be based in Matosinhos, in the district of Porto, this center, still in the design phase, will focus on innovation, environment and technology, he said.

Despite a “remarkable growth” in Portugal, the administrator is perpetual in saying that the country where the company has the most revenue “is obviously” Angola.

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