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Banco do Brasil, Banco Macro Q2 profits jump; BBVA to sell Paraguay unit

* Banco do Brasil SA posted net income of 4.21 billion reais in the second quarter of 2019, 34.2% higher than the 3.14 billion reais in the year-ago period. Net financial margin ticked 4.7% higher to 9.50 billion reais as net allowance for loan losses fell 0.6% to 3.56 billion reais.

* Banco Macro SA's net income was 7.03 billion Argentine pesos in the second quarter, soaring 124% from 3.14 billion pesos a year ago. The 85% jump in net interest income to 16.79 billion pesos and 26% rise in net fee income to 3.39 billion pesos offset a 48% growth in administrative expenses and a 49% jump in provisions.

* Spain's Banco Bilbao Vizcaya Argentaria SA agreed to sell unit BBVA Paraguay SA to Banco GNB Paraguay SA for roughly $270 million, subject to adjustments until the closing of the transaction, which is expected to take place in the fourth quarter pending regulatory approvals. BBVA expects the deal will result in roughly €20 million in net capital gains and will boost its fully loaded common equity Tier 1 capital ratio by about 5 basis points.


* Fitch Ratings placed the BBB-(mex) national scale rating of Principal Mexico Cia. de Seguros SA de CV on Rating Watch Evolving, following the signing of a contract that allows asset manager Akaan Lombard International to buy all the shares of the Mexican insurer. The agreement, announced in September 2018, still awaits regulatory approval. Fitch also affirmed and withdrew the BBB(mex) national scale ratings of Principal Pensiones SA De CV Principal Grupo Financiero.

* Mexican banker Manuel Medina Mora, who rose to prominence during a long career at Citigroup Inc., died at 69, Reuters reported, citing Mexican unit Grupo Financiero Citibanamex SA de CV, where he was CEO. During his tenure, he was credited for turning the Mexican unit into a major source of support for Citi after the 2007-2009 financial crisis.

* Mexico's government sold 3 billion UDI inflation-indexed investment units in 30-year Udibonos bonds in the local market, El Financiero reported, citing a Finance Ministry statement. The bonds, which mature in November 2050, carry a coupon of 4.0% and a yield of 3.71%.

* Banco Santander México SA announced an offer to acquire all of its issued and outstanding series B shares and American Depositary Shares owned by Spanish parent Banco Santander SA. Santander México will offer in exchange 0.337 of an ordinary share in Santander Spain and 1.685 of a Santander Spain ADR for each of the Mexican unit's own ordinary shares and ADRs that it receives.


* Midwest Holding Inc. subsidiary American Life & Security Corp. has entered into a funds withheld co-insurance and modified co-insurance agreement with Barbados-based Ironbound Reinsurance Co. Ltd. As of July 25, American Life ceded, on a funds withheld co-insurance and modified co-insurance basis, an initial 95% quota share of certain liabilities in connection with certain multiyear guarantee annuities business of American Life.


* Brazilian insurer Sul América SA's second-quarter 2019 net income after noncontrolling interest jumped to 260.8 million reais, up 92.6% from 135.4 million reais in the year-ago quarter. The result included a reduction in its effective tax rate due to a reversal of deferred tax liabilities, equivalent to about 77 million reais. This was partly offset by a reversal of equity income equivalent to about 14 million reais.

* Consumer credit usage in Brazil rose 3% monthly in June, Diário Comércio Indústria & Serviços reported, citing data from the CNDL retailers' confederation and credit research firm SPC Brazil.

* Authorities in Rio de Janeiro filed 12 lawsuits against banks at the end of June in a bid to secure information about "abandoned" assets and financial investments claimed by the city government, Valor Econômico reported.

* The expansion of real estate credit in Brazil will be increasingly dependent on the capital market in the coming years as the current sources of project financing, the FGTS workers' severance fund and savings account resources, become insufficient for fueling the mortgage market's growth, according to an analysis by Valor Econômico.


* Venezuela is skipping a round of talks with the opposition to protest against new U.S. sanctions that freeze all of the Andean nation's assets located in the U.S., Reuters reported, citing Venezuela's information ministry.

* Bancolombia SA is seeing 52% annual growth in mobile banking transactions, adding about 180,000 customers per month through its Nequi and Bancolombia a la Mano platforms, CEO Juan Carlos Mora told La República in an interview.


* Fitch Ratings upgraded the national ratings of BCI Seguros Generales SA and BCI Seguros Vida SA to AA+(cl) from AA(cl). Fitch said BCI Seguros Generales' business profile is anchored on its stable market position and business diversification, while BCI Seguros Vida showed improvements in the concentration of its business and distribution channels.

* A month since their launch in Argentina, there is growing interest among bank customers about "echeqs," or electronic checks, El Cronista reported. Local banks have been accepting the new fully digital instruments since July 1, under the terms of a central bank resolution, though they have yet to become a popular payment option.

* Lending to Argentina's private sector fell 1.7% monthly in real terms in July, despite an increase in consumer financing due to government-led initiatives, El Cronista reported, citing central bank data.


* Moody's said that global purchases of green bonds totaled $66.6 billion in the second quarter, boosting first-half issuances to $117 billion, 47% higher than the first six months of 2018. Non-financial and financial corporates accounted for $14.9 billion and $13.6 billion in issuances, respectively.


* Middle East & Africa: Bank ABC sees Q2 profit dip; Investec's asset management spinoff set for Q1'20

* Europe: Aviva, Zurich Insurance H1 profits up; RBI result down; former HSBC exec fined

* North America: Hedge fund Hoplite to shut down; NYDFS leads probe on payroll advance sector

Helen Popper contributed to this article.

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