Facade of a historic building with columns and large windows, where people can be seen climbing the entrance stairs and a sign reading Tamburini Museum under a clear sky — Bank of Cordoba | La Derecha Diario

Camara — Bank of Cordoba | La Derecha Diario

Bank of Córdoba: significant collapse in profits and million-dollar expenses on advertising

The provincial entity showed a 98% drop in profits while maintaining substantial expenditures in non-financial areas

03/09/2025 13:10:00h

Editorial Team

Banco de Córdoba closed the first half of 2025 with profits at historic lows. It reported just $866 million in net profit, which means a year-on-year drop of more than 98%. The contrast is striking compared to the $66,000 million it had reported in the first half of last year.

The operating result also showed a sharp decline. It went from $381,895 million in 2024 to $54,730 million in 2025, representing an 86% decrease. This reduction is explained by the loss of financial margin in a semester marked by lower interest rates and reduced inflation.

Interest income, the main source of funds, fell by almost 60%. From $345,170 million in 2024, it dropped to $146,081 million in 2025. Meanwhile, commission income grew 32% year-on-year, rising from $65,225 million to $85,694 million, which only partially offset the decline.

Short dark-haired man in a blue suit and white jersey posing inside a modern building with glass railings and wooden walls

Raúl Paolasso, president of Banco de Córdoba | La Derecha Diario

Loans on the rise and short-term deposits

The loan portfolio totaled $2.51 trillion as of June, with a 17% increase compared to December 2024. This growth was driven by financing to the private sector. Meanwhile, credit to the public sector remained at more moderate levels during the first half of the year.

Managed deposits reached $3.79 trillion, representing a 6.2% increase compared to the end of 2024. The public sector contributed $1.32 trillion, up from the previous $915 billion. In contrast, private deposits fell slightly to $2.46 trillion compared to the previous $2.65 trillion.

More than 85% of deposits remain placed at 30 days, which forces the bank to face a high monthly turnover of funds. Only 9% are placed at terms of 90 to 180 days and less than 1% exceed one year. Even with this fragility, the share of very short-term deposits fell compared to 2024, when they exceeded 95%.

Image featuring the logos of Bancor and the Government of the Province of Córdoba on a green background with orange details and a colorful silhouette of the province

In advertising and publicity, the bank allocated more than 2 billion pesos (4.41 million pounds) this year | La Derecha Diario

Pressure from labor and administrative expenses

Personnel expenses amounted to $99,317 million, below the $124,607 million in 2024. However, severance payments increased thirteenfold. They went from $840 million to $11,591 million in one year, while salaries and social security contributions fell to $66,751 million and $19,441 million, respectively.

Banco de Córdoba's administrative expenses totaled $112,406 million in the semester.For advertising and publicity, it allocated $2,109 million, a figure lower than the $2,668 million in 2024, but still high in a context of strong adjustment. At the same time, it spent $27,324 million on administrative services, $27,619 million on maintenance, and $32,923 million on taxes.

Some cuts were drastic: cash transportation was reduced from $12,956 million to $3,196 million (-75%) and insurance expenses fell from $3,518 million to $269 million (-90%). Nevertheless, advertising and administrative management expenses continue to represent a significant weight in the provincial bank's balance sheet.

Allocating more than $2,000 million to advertising is an absolute irresponsibility that reveals misguided management priorities. While the country is undergoing a severe adjustment to reduce unnecessary expenses, the provincial bank keeps superfluous expenditures. Bancor should focus resources on strengthening loans and efficiency, not on advertising campaigns that squander public money without providing real value to citizens.

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