S&P: Banks should "sacrifice" profits.

Internet Securities, March, 2004

MEXICO CITY, Mar 22, 2004 (El Economista/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Specialized financial intermediates should sacrifice their profits in order to create an adequate level of reserves, given that margins are tight and asset levels are lower, reported the international credit ratings agency Standard and Poor's (S&P).

Although the sector increased its operating volumes, there is currently much competition in the banking sector, especially in automobile financing. According to a report, intermediates "have not been able to increase their efficiency, for this reason spending has increased as operational volumes grow." Nevertheless, even with lower assets, portfolios have a manageable risk, according to S&P.

The company...