Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.
SOURCE BrokerBank Securities, Inc.
NEW YORK, June 9, 2014 /PRNewswire/ -- Doral Financial Corporation (NYSE: DRL) is a bank holding company located in the Commonwealth of Puerto Rico with growing operations in the United States, specifically in the New York City (NYC) metropolitan area as well as in parts of Florida. The company is engaged in retail banking, mortgage banking and insurance agency activities through its wholly-owned subsidiaries, which include Doral Bank, Doral Insurance Agency, Doral Recovery and Doral Properties.
Recently, Fitch Ratings came out with an economic report regarding Puerto Rico's weak fundamentals and ongoing budgetary challenges for the government there, which will likely "weigh on the operating performance and credit profiles of local banks." Overall, unemployment remains high at around 14%, while the local housing market has been restrained by these poor labor market conditions. The government of Puerto Rico continues to see high debt levels (approximately $70 billion) and increasing pension funding requirements. As a result, GDP growth has been, and will continue to be slow -- hurt also by the Commonwealth's credit rating downgrade to junk status by all three of the major credit rating agencies in February 2014. Although the downgrade was not unexpected, it did force some selling in many municipal bond mutual funds that are only allowed to hold investment grade debt in their portfolios.
Despite recent actions by the government to reduce deficits and reform the pension system, Puerto Rico will likely face high interest rates and continued economic weakness going forward. As such, banks in the Commonwealth, including DRL, are expected to continue to face a tough economic environment for the time being.
A full in-depth analyst report on DRL that includes risk factors, industry review, financial position, potential revenues, review of current business model, competition breakdown, analyst summary, and recommendation can be viewed by using the following link at no cost:
Copy and paste to browser may be required.
This report was prepared for informational purposes only. Affiliated parties involved with producing and issuing this report have not been compensated in any form. A full disclaimer can be found by viewing the full analyst report.
This report may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of mentioned company to be materially different from the statements made herein.
Content is researched, written and reviewed on a best-effort basis. This document, article or report is written and authored by Mike Maggi, CFA. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below. We do not engage in high frequency trading.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
BrokerBank Securities, Inc. is a member of the Financial Industry Regulatory Authority, CRD number #130116.
©2012 PR Newswire. All Rights Reserved.