Banesco USA in Puerto Rico reported a Positive outlook revision from Kroll Bond Rating Agency based on improved financial performance in 2025.
Banesco USA said Kroll Bond Rating Agency revised the outlook on all of the bank’s long-term ratings to Positive, citing sustained improvements in earnings, operating efficiency and overall financial performance.
The revision from Stable to Positive reflects profitability metrics that KBRA said are tracking above peer averages. Banesco USA reported a return on assets of 1.14% for the first nine months of 2025, exceeding the average for similarly rated institutions, according to the agency.
KBRA attributed the performance largely to balance sheet growth supported by the U.S. Treasury Department’s Emergency Capital Investment Program, which the agency said has helped improve the bank’s scale and operating efficiency.
“The Positive Outlook from Stable Outlook reflects Banesco’s sustained improvement in earnings,” KBRA said, noting that operating expenses declined to 2% as a result of cost discipline.
The agency also highlighted a reduction in the bank’s efficiency ratio to 56% for the nine months ended in 2025, which KBRA said reflect “stronger operating leverage stemming from the expanded balance sheet.”
KBRA affirmed Banesco USA’s long-term deposit and senior unsecured debt ratings at BBB, its subordinated debt rating at BBB- and its short-term deposit and debt ratings at K3.
The rating agency also pointed to capital strength and asset quality as supporting factors. KBRA said Banesco USA continues to maintain a Community Bank Leverage Ratio above 10%, reporting a ratio of 11.5% as of the third quarter of 2025.
Asset quality trends were described as healthy, supported by what KBRA called a strong credit culture. Provisions for credit losses totaled $4.3 million through the first nine months of 2025, representing about 0.1% of average assets.
Calixto García-Vélez, president of Banesco USA, said the outlook revision reflects the bank’s strategy and financial discipline.
“KBRA’s outlook revision to Positive is a strong validation of our disciplined strategy, solid financial performance, and unwavering commitment to strong risk management,” García-Vélez said. “This recognition reflects the dedication of our entire team and reinforces our confidence in the bank’s long-term strength and stability.”
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