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In This List

Deal buzz; the bottom line


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Banking Essentials Newsletter: 23rd August edition


Banking Essentials Newsletter: 9th August Edition

Deal buzz; the bottom line

S&P Global Market Intelligence presents the week's latest news and trends in Latin American banking.

Deal buzz

* Scotiabank Perú SAA agreed to acquire a 51% controlling interest in Lima-based Banco Cencosud SA for approximately C$130 million.

* Panama's Grupo Prival SA said it will sell its El Salvador-based subsidiary Prival Securities El Salvador SA de CV.

* Mexico's Banco del Bajío SA Institución de Banca Múltiple is open to talks with potential buyers interested in acquiring the bank, but it would rather purchase another bank itself, CEO Carlos de la Cerda said.

The bottom line

* Banco do Brasil SA saw a 20.3% rise in its adjusted net income for the first quarter, booking about 3.03 billion reais.

* Banco Votorantim SA doubled its first-quarter net income from the year-ago to 255 million reais.

* Banco Daycoval SA's net income for the first quarter rose 35.2% year over year to hit 165.4 million reais.

* Banco Pine SA's net income soared to 5 million reais in the first quarter from 1 million reais in the prior-year period.

* Peru's Intercorp Financial Services Inc. posted a 22.0% year-over-year rise in first-quarter net income, reaching 290.0 million soles.

Crimes and fines

* Federal prosecutors in Brazil filed an opinion with the Supreme Court calling for the resumption of a probe into an alleged corruption scheme involving Banco Bradesco SA Chairman Luiz Carlos Trabuco Cappi.

* Argentine consumer defense association ADUC has filed a series of class-action lawsuits against several banks, including Banco Columbia SA, Banco Santander Río SA and Banco Macro SA.

Regulatory avenue

* Peru is undergoing a major evaluation of its systems in line with the prevention of money laundering and terrorism financing, according to financial regulator SBS.

* Argentina's recently passed capital markets reform law will improve local banks' capacity to securitize mortgages, which is a credit positive, Moody's said.

* A Chilean congressional committee asked the country's banking superintendency, the SBIF, to draft a report on the security protocols used by banks in their mobile applications.

In other news

* The board of Brazil's Caixa Econômica Federal approved a set of new measures meant to strengthen corporate governance.

* Brazil's state-run Banco Nacional de Desenvolvimento Econômico e Social plans to sell more than 10 billion reais in portfolio assets this year, the bank's CEO Dyogo Oliveira said.

* Moody's said Banco Central de la República Argentina's decision to raise its policy interest rate by 675 basis points to 40% is credit negative for the country's banks as the steep rate increases will lead to a rise in delinquencies, swollen credit costs and a squeeze on lending margins.

* The CEO of Caixa Econômica Federal, Nelson de Souza, said the bank has enough resources to expand its loan portfolio in 2018 and 2019 despite the absence of contributions from the FGTS worker's fund.

* The shareholders of Bolsa de Comercio de Rosario unanimously approved a plan for the Argentine stock exchange operator, together with certain partners, to launch its own commercial bank.

Featured this week on S&P Global Market Intelligence

* As Argentina combats crisis, banks set to feel short-term pain: Argentina's banks could be in for a trying second quarter as the central bank's sharp and sudden interest rate hikes compress profit margins and slow loan growth.

* Argentina's troubles a warning for emerging markets as US rate cycle turns: Argentina's humiliating resort to the International Monetary Fund bodes ill for other emerging markets like Turkey which are heavily dependent on foreign funding, but many developing nations are well placed to withstand a stronger dollar and the rise in U.S. interest rates, analysts said.

* Hires and Fires: A weekly rundown of executive management, board and other personnel moves at Latin American financial institutions.

* Ratings Roundup: A summary of various ratings actions on Latin American financial institutions and economies.