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Grupo Aval's Q1 profit up 25.8%; Banco Davivienda's falls 23.2%


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Grupo Aval's Q1 profit up 25.8%; Banco Davivienda's falls 23.2%

* Grupo Aval Acciones y Valores SA reported first-quarter net income attributable to owners of the parent company of 587.0 billion Colombian pesos, up 25.8% from 466.4 billion pesos a year earlier. Net interest income grew 9.6% year over year to reach about 2.540 trillion pesos.

* Banco Davivienda SA reported first-quarter net income of about 326 billion Colombian pesos, down 23.2% from 424 billion pesos in the year-ago period. Provision expenses increased 9.2% annually to 486 billion pesos while financial expenses jumped 28.8% to 1.011 trillion pesos.


* Mexican central bank Gov. Agustin Carstens said the monetary authority's interest rate increases should not have an impact on the country's growth forecasts, Reuters reported. Carstens expects inflation to slow considerably in early 2018.

* S&P Global Ratings revised its outlook on Banco Ahorro Famsa SA Institución de Banca Múltiple to negative from stable following a similar action on the bank's parent company, Mexican retailer Grupo Famsa.

* Banco Bilbao Vizcaya Argentaria SA raised its 2017 economic growth forecast for Mexico to 1.6% from 1% and its 2018 forecast to 2.0% from 1.8%, saying that uncertainty generated by the result of the 2016 U.S. election is gradually subsiding, El Economista reported.

* Banco del Ahorro Nacional y Servicios Financieros S.N.C. opened an office in the Mexico City airport to provide financial services to Mexicans who are repatriating from the U.S., El Economista reported.


* S&P Global Ratings placed SCOR Brasil Resseguros SA's BBB+ financial strength rating on CreditWatch with negative implications. The placement follows a similar action on Brazil's sovereign ratings earlier in May.

* Top Brazilian banking executives said they expect the government to proceed with its economic reform agenda even if President Michel Temer is removed from office due to corruption allegations, Reuters reported. A Supreme Court judge has given Temer 24 hours to respond to questions from police about his supposed role in the graft scandal, "a source with direct knowledge of the investigation" said.

* Brazil's economy likely grew 1.0% in the first quarter of 2017 from the previous quarter on a seasonally adjusted basis, according to the median forecast of 20 economists polled by Reuters. Official GDP data is due to be released June 1.

* Brazilian state-owned fund FGEDUC will sell an unspecified amount of shares in IRB-Brasil Resseguros SA as part of the company's initial public offering, Reuters reported, citing securities filings.

* The Brazilian government on May 30 sent a formal request to join the Organization for Economic Cooperation and Development, according to a statement from the presidential palace.

* Banco Nacional de Desenvolvimento Econômico e Social and Caixa Econômica Federal will be the main operators of a new Brazil-China cooperation fund that will provide up to $20 billion in financing for investment projects in Brazil, Valor Econômico reported.

* Banco do Brasil SA's loan disbursements for individuals have increased 25% so far in 2017 compared to the same period a year ago, while corporate lending has risen 20%, Valor Econômico reported, citing CEO Paulo Caffarelli.

* Brazilian President Michel Temer told businessmen at an investment forum that state-run development bank Banco Nacional de Desenvolvimento Econômico e Social is no longer prioritizing loans to so-called "national champion" companies and is instead applying a more professional criteria in its lending decisions, Valor Econômico reported.

* Senior executives from major Brazilian banks were notably absent from a business event attended by President Michel Temer, with one executive who preferred to remain anonymous saying that he did not attend because of the current political climate, Valor Econômico reported. Executives from foreign banks who were present expressed concern that Brazil's political crisis could impact the credit market and economic activity.

* Brazilian mortgage lenders association Abecip said it expects mortgage loans in the country to increase 6% in 2017, noting that banks are seeing higher demand for these loans despite lingering political and economic uncertainty, Valor Econômico reported.

* Brazilian Planning Minister Dyogo Oliveira said the Senate will pass a key labor reform later this week, Reuters reported. Meanwhile, the country's lower house of Congress will restart discussions over a planned pension reform in a few weeks, speaker Rodrigo Maia said.


* Mexican Foreign Minister Luis Videgaray said Venezuela has "ceased to be a functional democracy and this is a tremendously dangerous thing for the region," Reuters reported. He hopes that a meeting of foreign ministers from members of the Organization of American States set for May 31 will produce a resolution demanding elections in Venezuela.

* Peru's economic growth will slow to 3% in 2017 due to the impact of severe flooding and an extensive corruption scandal involving Brazilian firm Odebrecht, Reuters reported, citing Peruvian Finance Minister Alfredo Thorne. The government had estimated 4.8% GDP growth for 2017 before the flooding and corruption scandal.

* Venezuela's opposition-controlled National Assembly asked the U.S. Congress to probe Goldman Sachs Group Inc.'s recent purchase of $2.8 billion of Venezuelan bonds, a deal it said made the company complicit in alleged human rights abuses by President Nicolas Maduro's government, Reuters reported. "As hard as it may try, Goldman Sachs ... cannot put lipstick on this pig of a deal for Venezuelans," said Julio Borges, head of Venezuela's opposition-led Congress.

* Ecuador generated $2 billion through a dual-tranche bond issuance on May 30, Thomson Reuters' IFR reported.


* S&P Global Ratings revised Uruguay's outlook to stable from negative, while affirming the country's BBB long-term foreign and local currency sovereign credit ratings and A-2 short-term foreign and local currency ratings. S&P expects the country's economy to strengthen gradually, pushing income levels higher and expanding its revenue base.

* Banco del Estado de Chile posted first-quarter net income attributable to owners of 43.10 billion Chilean pesos, down 19.9% from 53.78 billion pesos a year earlier. The bank's provision expenses jumped 34.3% year over year to 62.66 billion pesos.

* Banco Macro SA said it obtained central bank approval to distribute cash dividends totaling about 701.5 million Argentine pesos, or 1.20 pesos per outstanding share.

* Itaú CorpBanca said it appointed Bernard Pasquier as a director, replacing João Lucas Duchene, who resigned from the bank's board in April. Pasquier will hold the position until the company's next annual ordinary shareholders' meeting.


* Global issuance of contingent convertible bonds will reach about $75 billion in 2017, similar to the 2016 figure of $78 billion, as banks have generally fulfilled their capital needs already, Moody's said.

* The U.S. dollar will "almost certainly" remain the most important reserve currency in the world for the foreseeable future, but the lack of a ready substitute does not mean the dollar's current position is entirely secure, according to Fitch Ratings. Two pieces of legislation currently working their way through the U.S. Congress would allow the Government Accountability Office to audit the Fed's monetary policy decisions and would also restrict the Fed's ability to provide financial sector support. "If implemented, the proposals would diminish the appeal of the dollar as a reserve currency over time," Fitch said.

* Latin American corporate credit indicators showed uneven growth trends across the region in the first quarter, with Peru, Argentina, Colombia and Mexico facing a positive-to-stable environment, while Brazil and Chile continue to struggle, Fitch Ratings said.

* Banco Bilbao Vizcaya Argentaria SA Chairman Francisco González said the fast rise of the financial technology sector, which provides cheaper financial services than traditional banks, is currently the biggest challenge facing the global banking industry, El Economista reported.


* Asia-Pacific: BlackRock eyes US$500M for Asian fund; Hana Financial to sell China unit stake

* Middle East & Africa: Liberty Holdings names new CEO; BMCE Bank Q1 profit drops

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Matthew Craze contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription.