Focusing on current
capitalization ratios, without understanding the extent to which the market-oriented nature of capital has become a critical aspect of the competitive scene, can potentially weaken the industry as much as any other competitive disadvantage.
8 billion in 2003 when the initial funding for these projects began); but that equity to
capitalization ratios are projected to improve to 33% versus 30% currently as a result of maintaining solid operating margins.
The robust growth registered since end-2004 surpassed the increase in CABEI's equity, though the bank still shows ample
capitalization ratios.
The ratings consider Pine's track record of satisfactory profitability, adequate liquidity and
capitalization ratios -- despite a history of large dividend distributions -- and a reasonably diversified loan portfolio, given its lower dependence on consignment lending compared with its local peers.
Constant capital increases, driven by its own results, capital increases from member countries and the incorporation of Spain as a shareholder in 2002 have sustained the bank's ample
capitalization ratios.
The aforementioned growth has increased the leverage of the system, while lower expected profitability will not be sufficient to relieve pressure on the bank's
capitalization ratios in the short and medium term.
In the past, the company's robust growth strategy caused deterioration in its
capitalization ratios.
Despite the improved capacity of the sovereign to fulfill its foreign currency obligations, the operating environment still presents significant challenges for banks due to slow loan demand, low interest rates, weak asset quality ratios and tight
capitalization ratios, which require special attention from the authorities and individual players.
FBP's
capitalization ratios could be negatively affected by the financial review.
Although goodwill will increase modestly, Sun Life's
capitalization ratios are expected to remain relatively unchanged.
This would include, but is not limited to, the impact of the final transactions on interest coverage and
capitalization ratios, as well as any potential changes to other factors such as bond covenants.
They also incorporate comparatively weak asset quality and
capitalization ratios that fall in-line with similarly rated banks.
