Inversiones La Construcción SA, or ILC, on May 29 reported first-quarter consolidated net profit of $51.2 million, a decrease of 86.2% from $371.2 million a year earlier. The year-ago result, however, included $335.6 million in income from its association with Prudential, which was discontinued in March 2016.
Non-insurance activity pulled in a profit of $20.6 million, 94.0% lower year over year than $344.3 million. First quarter net income of the non-insurance activity actually increased, however, by $11.96 million, or 137.8% higher than the year-ago period, "if extraordinary profit arising from the association with Prudential in AFP Habitat [that] occurred in 2016 is isolated," the company noted.
Profit from insurance activity totaled $29.3 million, 19.9% higher than the $24.4 million in the year-ago period.
Net premium income from insurance activity fell 21.2% over the year to $157.9 million from $200.3 million, while net investments income grew 9.5% to $126.8 million from $115.8 million.
Meanwhile, operational expenses for non-insurance activity also grew 11.7% to $48.8 million, from $43.7 million. Operational expenses for insurance activity ticked up 4.3% to $10.7 million, from $10.3 million.
The company added that unit Banco Internacional SA recorded a net profit of $1.7 million in the quarter, down 40.2% from $2.8 million earned in the year ago period. The company attributed the decline to lower affiliate participation that supports the banking business.
ILC said that the banking unit's assets increased, however, by 4.2% compared to a year ago due to "larger credits and accounts receivables from clients due to increased loans, together with higher balances in operations with liquidation in progress."
The bank's net interest income was $9.8 million, up slightly from $9.7 million, while net fee income rose to $1.8 million from $1.7 million a year ago.