Ori­en­tal Fi­nan­cial re­ports 3Q re­sults

The Pak Banker - - Front Page -


Ori­en­tal Fi­nan­cial Group to­day an­nounced re­sults for the third quar­ter ended Septem­ber 30, 2012.

In­come per com­mon share ( di­luted) of $ 0.35 in­creased 2.9% from $0.34 in the pre­ced­ing 2012 quar­ter and was $0.35 in the year ago quar­ter.

In­come avail­able to com­mon share­hold­ers of $14.7 mil­lion in­creased 7.0% from the pre­ced­ing 2012 quar­ter and de­clined 5.5% from the year ago quar­ter.

Re­sults in­cluded $1.8 mil­lion in div­i­dends de­clared dur­ing third quar­ter 2012 on the $84 mil­lion con­vert­ible pre­ferred stock is­sued ear­lier in the quar­ter. The cap­i­tal raise was re­lated to the ac­qui­si­tion of BBVA's Puerto Rico op­er­a­tions (BBVA PR), which is an­tic­i­pated to close in the fourth quar­ter of 2012.

Book value per com­mon share of $15.40 at Septem­ber 30, 2012 com­pared to $15.39 at June 30, 2012 and $15.05 at Septem­ber 30, 2011. Cash div­i­dend per com­mon share of $0.06 was 20% greater than in the year ago quar­ter. "Dur­ing the quar­ter, we posted im­prove­ments in al­most ev­ery key area, in­clud­ing higher in­ter­est in­come from loans and se­cu­ri­ties, in­creased loan pro­duc­tion, lower cost of funds, and stronger credit qual­ity," said José Rafael Fernán­dez, Pres­i­dent, Chief Ex­ec­u­tive Of­fi­cer and Vice Chair­man of the Board. At the same time, we con­tin­ued to pre­pare for the BBVA PR ac­qui­si­tion, in or­der to cre­ate a mar­ket lead­ing bank that is strongly cap­i­tal­ized, locally con­trolled and to­tally fo­cused on Puerto Rico. In ad­di­tion to rais­ing cap­i­tal through the is­suance of pre­ferred stock, we took ad­van­tage of mar­ket con­di­tions later in the quar­ter to ini­ti­ate our pre­vi­ously an­nounced delever­ag­ing plan ahead of sched­ule, by sell­ing $532.4 mil­lion of our in­vest­ment se­cu­ri­ties and can­celling $400 mil­lion of our re­pur­chase agree­ment fund­ing. In ad­di­tion, we have been work­ing closely with BBVA PR's highly ex­pe­ri­enced man­age­ment and staff to en­sure a smooth tran­si­tion for both our teams. In sum, we are con­tin­u­ing to move in the right di­rec­tion for achiev­ing our goals for 2012 and be­yond. With the lo­cal econ­omy show­ing signs of sta­bi­liza­tion.

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