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CNP cancels Pan Seguros deal; Bradesco's Q4'16 profit falls 17.5%

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CNP cancels Pan Seguros deal; Bradesco's Q4'16 profit falls 17.5%

* CNP Assurances SA said its April 2016 agreement to acquire a 51% stake in Pan Seguros SA and Pan Corretora from Banco BTG Pactual SA has been terminated since some of the deal's conditions precedent were not met. BTG Pactual also acknowledged that the agreement is no longer valid.

* Banco Bradesco SA reported book net income of about 3.59 billion reais for the fourth quarter of 2016, down 17.5% from 4.35 billion reais in the year-ago period. The result came as the bank recorded 5.53 billion reais in expenses for allowance for loan losses, up 31.8% from 4.19 billion reais a year earlier.

MEXICO AND CENTRAL AMERICA

* Fitch Ratings downgraded El Salvador's long-term foreign and local currency issuer default ratings to B from B+, while revising the outlook to negative from stable. The country faces a "continuing high level of political polarization with a prolonged period of congressional gridlock that has severely limited the government's financing options and hindered meaningful fiscal measures to arrest the deterioration of public finances," Fitch said.

* Banco Bilbao Vizcaya Argentaria SA is expecting to see slower loan growth at its Mexican operations in 2017, but remains optimistic on the long-term outlook for the country despite uncertainties over trade with the U.S., CEO Carlos Torres Vila told analysts. "We expect Mexico to slow down to 1% growth in 2017, and that would have an impact on our loan growth decelerating to high single digits," the executive said.

* Mexico's government said it anticipates starting formal NAFTA renegotiation discussions with Canada and the U.S. in May, Reuters reported. Mexico has launched a 90-day consultation period with the local private sector to "draw up clear lines on what the main objectives will be," Economy Minister Ildefonso Guajardo said.

* Overall remittances to Mexico reached a record high of $26.97 billion in 2016, up almost 9% from the previous year, Reuters reported. Remittances increased 6.2% year over year in December 2016 to more than $2.3 billion, most of which were from the U.S.

* Panamanian banking regulator SBP ordered the liquidation of Banca Privada d'Andorra SA (Panamá) after a potential buyout of the bank failed to materialize, Capital Financiero reported. The SBP took control of the bank in March 2015 amid a U.S. money laundering investigation into its parent company.

* Mexico and the European Union have scheduled two fresh rounds of trade discussions in April and June as they look to strengthen their economic relations, Reuters reported. "Together, we are witnessing the worrying rise of protectionism around the world. Side by side, as like-minded partners, we must now stand up for the idea of global, open cooperation," Mexico and the EU said in a joint statement.

BRAZIL

* S&P Global Ratings affirmed Paraná Banco SA's global and national ratings at BB-/B and brA, respectively, while removing its negative CreditWatch listing on the ratings. The action was based on a re-evaluation on the bank's risk-adjusted capital ratio for the next two years, which resulted in a credit risk reduction in the rating agency's capital model.

* Brazil's GDP will probably start expanding again in the first quarter before annual growth picks up to 2% by the fourth quarter, Reuters reported, citing Finance Minister Henrique Meirelles. The country recorded a trade surplus of about $2.73 billion in January, the newswire reported separately.

* The Brazilian Senate voted 61-10 to elect Eunicio Oliveira, an ally of President Michel Temer, as its new president, Reuters reported. Oliveira faces allegations that he accepted a 2.1 million reais bribe from a defendant in an extensive corruption probe, although he denies the charges.

* Itaú Unibanco Holding SA appointed Wagner Sanches, the bank's head of credit risk and modeling, to lead its personal banking products division, O Estado de S. Paulo reported. Sanches will also be in charge of mortgage credit and digital channels.

* Brazil's government disbursed 29.16 billion reais in state subsidies during 2016 to finance subsidized loans granted through state-run development bank Banco Nacional de Desenvolvimento Econômico e Social, up 53% from 2015, O Globo reported, citing data from the national Treasury.

* Caixa Econômica Federal plans to offer lower interest rates on mortgage loans to low-risk borrowers, such as those who make large down payments or take short-term loans, Reuters reported, citing Nelson Antonio de Souza, the state-run bank's vice president for housing.

* A decline in Brazil's country risk, progress in the country's fiscal adjustment process and falling inflation have led economists to argue that the country's central bank has room to pursue more aggressive rate cuts, Valor Econômico reported.

ANDEAN

* Peruvian financial regulator SBS ordered the closure of the branches of Créditos Cashbank SAC in the cities of Tarma and Chupaca for allegedly performing financial intermediation activities without legal authorization, El Comercio reported. The SBS said it would take legal action against the company, which had been given repeated warnings.

SOUTHERN CONE

* Banco del Estado de Chile said it opened new branches in the south central Chilean communes of Hualaihué and Puerto Montt. The Puerto Montt branch is in the city of Alerce, in the province of Llanquihue, while the Hualaihué branch is in the province of Palena.

* Banco Supervielle SA set the terms for the negotiable bonds offered in late January, with a duration established at 3.5 years and an interest rate of at least 18%. The company is looking to offer the Argentine peso equivalent of up to $250 million in the offering, though it is expandable to $300 million.

* Uruguay's Economy Ministry said it will issue $2.05 billion in debt in 2017, compared to $1.7 billion in 2016, Reuters reported. Financing requirements for the country, which booked a fiscal deficit of 4% last year, will total $2.97 billion.

* Argentina's national banking union, Asociación Bancaria, will consider calling strikes next week after wage discussions with banking representatives fell apart, El Cronista reported. Union leader Sergio Palazzo said bank representatives walked out of a meeting on Feb. 1 and refused to honor a salary agreement reached in November 2016.

PAN LATIN AMERICA

* Watchdogs should have the power to wipe out the cash guarantees posted by members of clearing houses or cancel derivative contracts in an emergency, the Financial Stability Board said. Clearing houses, or central counterparties, have grown in importance within the global financial infrastructure. But that increasing importance means that CCPs have themselves become a source of systemic risk, prompting the FSB to begin fashioning a framework for dealing with the fallout of a clearing house failure.

* Federal Open Market Committee policymakers voted to hold the U.S. Federal Reserve's key rate at its current target range during their first meeting of 2017. Policymakers voted to keep the target range for the fed funds rate between 50 basis points and 75 basis points.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: US Fed officials hold target rate; KB Kookmin eyes stake sale in Kazakh bank

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

Helen Popper contributed to this article.

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