Oriental reports $13.8M in 2Q profit
Oriental Financial Group reported Monday $13.8 million in profits for the second quarter ended June 30. The current results represent a 45 percent improvement from the $9.5 million in the preceding 2012 quarter and the same percentage drop in comparison to the $25.3 million on record for the same year-ago quarter.
As compared to the year ago period, the second quarter of 2012 reflects a reduced investment securities portfolio, higher premium amortization on those securities, and the absence of a $3.0 million benefit from the settlement of various tax contingencies.
“We are continuing to move in the right direction for achieving our goals for 2012,” said OFG President José Rafael Fernández. “The investments made to expand our banking capabilities, the active management of our risk exposures, and the transformation of our financial model, have resulted in a growth oriented franchise with a very strong capital position.”
Over the past year, Oriental has sold securities to lock in gains, deleveraged the balance sheet, reduced wholesale funding costs, and built up its cash position, putting the company in a favorable position to move forward with its recently announced plan to acquire the Puerto Rico operations of Banco Bilbao Vizcaya Argentaria, S.A. for $500 million in cash.
“Complementary to our focus on growing our banking business, our planned acquisition of BBVA’s Puerto Rico operations has been well received and remains on target for closing before year end 2012, subject to customary regulatory approvals,” he said upon disclosing results Monday.