* Banco del Estado de Chile posted second-quarter net income attributable to owners of about 70.98 billion Chilean pesos, up 84.6% from 38.46 billion pesos in the year-ago period. Net interest income improved 4.5% year over year to 213.77 billion pesos while provision expenses fell 18.7% to 64.23 billion pesos.
* Federal police in Brazil raided Banco BTG Pactual SA's headquarters and addresses belonging to founder and former CEO Andre Esteves on Aug. 23 in the latest phase of the so-called Lava Jato corruption probe. The current investigation focuses on whether state-run oil firm Petrobras sold stakes in African oilfields to BTG Pactual in 2013 for an amount lower than preliminary assessments by other financial institutions. BTG shares closed the day nearly 15% lower.
MEXICO AND CENTRAL AMERICA
* Mexico's GDP was unchanged in the second quarter compared to the first three months of the year, according to final growth data from national statistics agency INEGI. The agency's preliminary growth estimate released in July pointed to economic expansion of 0.1% in the second quarter from the first.
* Sul América SA signed an agreement to sell its automobile and other property & casualty operations to Allianz Seguros SA, a subsidiary of German insurance giant Allianz Group. The deal is worth 3 billion reais, based on a net equity of 700 million reais in the newly formed entity to be structured specifically for purpose of the transaction. The price is subject to adjustment mechanisms.
* The Brazilian real on Aug. 23 reached its weakest level against the U.S. dollar in nearly a year, at one point falling beyond 4.13 reais per dollar, Reuters reported. The drop came amid further escalation in U.S.-China trade tensions that hurt investor confidence and asset prices around the globe.
* Banco do Brasil SA said Brazil's government issued a decree approving the sale of 20,785,200 common shares it holds in the state-run bank. Meanwhile, a source with knowledge of the matter told Reuters that both the government and Caixa Econômica Federal are expected to soon register for a secondary offering of Banco do Brasil shares.
* Banco do Brasil SA CEO Rubem Novaes said the bank plans to follow in the footsteps of fellow state-run lender Caixa Econômica Federal by launching inflation-linked mortgage loans and providing clients with more borrowing options, Diário Comércio Indústria e Serviços reported.
* XP Investimentos Corretora de Câmbio Títulos e Valores Mobiliários SA is creating a new business division called XP Empresas that will focus on offering credit products to medium-sized companies, Estadão reported. The new division will be led by Rodrigo Moreira, who has been working at Itaú Unibanco Holding SA for the last 20 years.
ANDEAN
* Peru's finance ministry lowered its GDP growth projection for 2019 to 3.0% from 4.2% previously, pointed to transitory supply shocks in certain sectors of the economy and an adverse international scenario amid ongoing U.S.-China trade tensions. The new GDP forecast for this year is lower than President Martin Vizcarra's July estimate of 3.5%, El Comercio reported.
* Banco Cooperativo Coopcentral Executive President Jorge Andrés López said the Colombian bank plans to introduce a new credit line for home improvements in 2020, La República reported. The bank is looking to grow its loan portfolio by 10.6% this year.
SOUTHERN CONE
* Uruguay's government said medical tests show President Tabare Vazquez has a malignant lung tumor, Reuters reported. The 79-year-old Vazquez was elected to a second five-year term in 2015.
* U.S. dollar deposits in Argentina's banking system declined by $1.9 billion, or 6% of total dollar deposits, in the week of Aug. 19, Reuters reported, citing central bank data. President Mauricio Macri's defeat in primary elections held Aug. 11 triggered a run on the peso and sparked fears over the government potentially freezing deposits.
* Argentina's central bank sold US$256 million in foreign reserves in the week of Aug. 19 in order to support the local peso currency, El Cronista reported. The intervention follows the sale of US$503 million in foreign reserves in the previous week.
* Coface Chile SA CEO Louis Des Cars said an increasing number of Chilean companies are seeking credit insurance to shield their business from record high late-payment rates, Diario Financiero reported.
* Asia-Pacific: RBA chief warns of global political shock; India to inject cash into banks again
* Middle East & Africa: FAB denies Qatari regulator's allegations; Fitch, S&P act on Lebanon
* Europe: Credit Suisse to bolster Swiss unit; Allianz's Brazil deal; hiring freeze at AIB
Helen Popper contributed to this article.
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