This article from La Prensa gives some interesting data. The banks say "it cost banks 52 cents to generate every $1 in revenue, as opposed to 39 cents the year before." Wow, such a deal. I wish I could get kind of return for every dollar i invest. And they do it with other peoples money. That is the deal!
Panama's banks reported total profits of $374.2 million through the end of May, 28 percent less than they earned in the same period of 2008.
According to a report from the industry, net interest income totaled $543.4 million, an increase of 10 percent from the same period of 2008.
But increased expenditures had an impact on profits, as it cost banks 52 cents to generate every $1 in revenue, as opposed to 39 cents the year before. The sector also showed a decline in the performance of income-generating assets.
"Banks should implement the necessary adjustments that will improve their performances during the rest of the year without impacting their market share," advised banking regulators.
Because of the global economic crisis, banks have taken more cautious approaches to lending, which has, in turn, impacted their profits.
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