* BBVA Banco Francés SA reported net income of about 1.55 billion Argentine pesos for the three-month period, 178.3% higher year over year from 555.2 million pesos. Net financial income went up 52.2% yearly to 5.52 billion pesos, income from financial intermediation rose 40.2% to about 6.30 billion pesos, and net income from services grew 36.2% to 859.8 million pesos.
* Barbados Prime Minister Mia Mottley said the country will restructure public debt of over 15 billion Barbadian dollars, Reuters reported. Starting June 3, the prime minister said "we are suspending payments due on debts owed to external commercial creditors. Similarly, we will endeavor to make scheduled domestic interest payments. However, domestic creditors will be asked to roll over principal maturities until we reach a restructuring agreement."
MEXICO AND CENTRAL AMERICA
* Guatemala's Fuego volcano erupted June 3, with 25 dead and nearly 300 injured, Reuters reported. The deaths were mostly concentrated in the El Rodeo, Alotenango and San Miguel los Lotes towns.
* Remittance payments sent to Mexico reached a monthly record of $2.72 billion in April 2018, beating the last record set in October 2017, El Economista reported, citing data from the central bank.
CARIBBEAN
* Cuba's Civil Defense Authority said seven died and two people were missing in the aftermath of Subtropical Storm Alberto as of June 3, Reuters reported.
BRAZIL
* Fitch Ratings expects a slight deterioration in Brazilian banks' retail and corporate loan portfolios due to the truck drivers' strike in the country which began in May, even though the strike seems to already be ending. Fitch notes the level of portfolio impact may be difficult to quantify.
* The liquidation of Banco Neon SA, as ordered by the Brazilian central bank, has not hampered the success of Brazil's financial technology sector in drawing new investment, an unnamed industry executive told Valor Econômico. According to the report, Banco Neon's business model more closely resembled a traditional bank than a fintech company, meaning its failure did not directly hit the fintech space, and Neon Pagamentos' ability to quickly form a partnership with Banco Votorantim SA also helped to calm the market.
* Banco Bradesco SA on May 24 sold about 4.3 million reais of shares resulting from a 10% bonus operation, auctioning off 16,118 common shares and 124,804 preferred shares. Shareholders as of June 5 will be paid about 28.19 reais per common share and 31.14 reais per preferred share.
* Brazilian real estate credit fintech Bcredi plans to break away from its parent company Barigui Companhia Hipotecária as it seeks to grow as an independent business, Diário Comércio Indústria & Serviços reported, citing co-founder Maria Teresa Fornea. She said the company had also helped launched an innovation hub in partnership with other tech companies in the southern city of Curitiba.
ANDEAN
* The chairman of Colombia's Financiera Dann Regional Compañía de Financiamiento SA, Luis Fernando Paredes García, has resigned. Gabriel Ernesto Aristizábal Betancourt replaced Paredes effective June 1.
* Venezuela is postponing a currency revaluation to Aug. 4 from the original deadline of June 4, Reuters reported. Leaders from the banking industry called for the postponement as the new banknotes and transaction systems were not yet ready.
* The Venezuelan central bank paid Citigroup Inc. $172 million to recover gold it used to guarantee swaps, Reuters reported, citing two sources familiar with the situation.
* Peru's economy is expected to grow 6% in April, which could be the highest since February 2016, El Comercio reported, citing the Economy and Finance Ministry.
* Peru's mortgage loan portfolio in April increased 8.63% year over year, slightly outpacing the growth in consumer and corporate credit, El Comercio reported, citing data from the country's statistics agency. Consumer loans increased 8.01% while loans to companies grew 7.45%.
* Peru's Corporación Financiera de Desarrollo SA will be able to cover 100% of its non-performing loan portfolio this year with an upcoming capital injection of about $51 million, CEO Pedro Grados told SEMANAeconómica in an interview. He said the bank plans to bring down the NPL rate to 15% by year-end from about 27%.
SOUTHERN CONE
* High interest rates have virtually paralyzed the credit market for small and medium-sized companies in Argentina since early May, El Cronista reported, citing trade groups and business managers. Representatives of the segment were calling on the government to revive subsidized loans for the purchase of machinery and other imported capital goods, which have become more costly due to the peso's depreciation.
* Canada's Bank of Nova Scotia received final approval from Chilean authorities for its $2.2-billion purchase of Banco Bilbao Vizcaya Argentaria Chile SA, Reuters reported. The company said in a statement that it had got the go-ahead from Chile's FNE competition watchdog, completing the approvals already granted by the central bank and Canadian regulators. The merger will enable Scotiabank Chile to have 14% of the country's credit market.
* Argentina's Banco Santander Río SA made a series of new appointments to key management jobs following a meeting of the board of directors, a regulatory filing showed. Marcos Devoto will become head of financial management, Arnaldo Gómez Yiché will lead the intervention department, Roberto d'Empaire Muskus will become risk management head, while Luis Aragón will be in charge of strategic planning. Sergio Galván was named as head of wealth management, Verónica Climent, head of staff management and development, and Guillermo Glattstein, head of chief of staff and costs.
PAN LATIN AMERICA
* The European Union and South America's Mercosur trade bloc will start a new round of trade talks this week amid renewed optimism that a deal could be near after two decades of on-and-off negotiations, Reuters reported.
* Mexican agricultural insurer Protección Agropecuaria Compañía de Seguros is considering launching operations in Peru, El Comercio reported, citing the company's international director, Jorge Landeros. The company is currently conducting a feasibility study and could start operating in the Andean country next year, he said.
IN OTHER PARTS OF THE WORLD
* Middle East & Africa: Israel eases process for prospective new banks; Nigeria Re said to eye 2018 IPO
* Europe: UniCredit eyes merger with SocGen; CYBG ups Virgin Money offer; Spain has new PM
Helen Popper contributed to this article.
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