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Earnings highlights; crimes and fines

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Earnings highlights; crimes and fines

S&P Global Market Intelligence presents the week's latest news and trends in Latin American banking.

Earnings highlights

* Grupo Security SA posted a 38.9% rise in its fourth-quarter net profit, reaching 21.05 billion Chilean pesos, amid a jump in Banco Security SA's income and a plunge in its life insurance business.

* Itaú CorpBanca recorded a smaller net loss in the fourth quarter of 17.62 billion pesos as compared to the year-ago period amid a fall in provisions for problem loans and stable net interest income.

* BTG Pactual Group, which operates through Banco BTG Pactual SA, said its adjusted profit for the fourth quarter increased 9.4% from a year earlier to reach 744 million Brazilian reais, on the back of higher revenues from investment banking and sales and trading.

* Banco do Nordeste do Brasil SA posted net income of 681.7 million reais in 2017, 6.9% lower compared to 2016 as personnel and other administrative expenses went up.

* Grupo Financiero HSBC SA de CV reported net income of about 4.54 billion Mexican pesos for the year of 2017, 37.4% higher year over year from 3.30 billion pesos in 2016.

Crimes and fines

* Brazilian securities and exchange commission CVM imposed 52.97 billion Brazilian reais in fines on Banco Pan SA, its holding company Silvio Santos Participações Ltda and several of the bank's board members and auditors for financial irregularities.

* Banco de Galicia y Buenos Aires SA was notified of a class-action lawsuit from Argentine consumer association ADUC relating to the bank's commission for interbranch fund withdrawals.

* Brazilian banking industry association Febraban and the country's federal police signed an agreement to work together to combat electronic fraud crimes.

2018 plans

* Milton Maluhy, CEO of Itaú CorpBanca, said he expects the bank to reach its profitability goals in Colombia in 2018.

* HSBC México SA Institución de Banca Múltiple Grupo Financiero HSBC will be focused on organic growth in the coming years with an emphasis on digital banking and consolidation, CEO Nuno Matos said.

* The integration of Grupo Financiero Interacciones SAB de CV into Grupo Financiero Banorte SAB de CV could be ready by the end of the first half of 2018, said Interacciones' CEO Carlos Alberto Rojo Macedo.

Exit and entry

* Novo Banco SA exited the Venezuelan banking sector after selling its branch in the country to locally based Bancamiga Banco Universal CA.

* The Chinese group XCMG Construction Machinery Co. Ltd. is reportedly studying the possibility of launching a multipurpose bank in Brazil.

* Colombia-based Grupo de Inversiones Suramericana SA will create a new company in Panama named SURA Ventures SA.

Cost cutting

* Banco Agropecuario will reportedly lay off 70 of its staff members as the government restructures the development bank, shuts down departments and creates a rescue management team to save it from collapsing.

* Chilean banks closed 95 branches between 2013 and 2017, or 4.2% of all branches, according to data from financial regulator SBIF.

In other news

* Brazilian financial technology startup Nubank raised $150 million in its sixth investment round bringing the total amount it has raised to $330 million since it was founded in 2013.

* Banco Inter SA filed for an initial public offering with securities regulator CVM.

Featured this week on S&P Global Market Intelligence

* Argentina's major banks see strong Q4 results despite jump in operating costs: Argentina's largest listed banks continued to post positive results in the fourth quarter of 2017, as the country's high-rate environment buoyed net interest income and helped offset a surge in operating expenses.

* Ratings Roundup: A summary of various ratings actions on Latin American financial institutions and economies.