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Banco ABC looks to expand investment banking; Itaú CorpBanca accepts fine

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Banco ABC looks to expand investment banking; Itaú CorpBanca accepts fine

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

Banking expectations

* Chile's banking market will likely see a moderation in asset growth in 2019, with an expected increase of about 7% amid tempering economic growth, according to estimates collected by Diario Financiero.

* Credit to individuals and companies in Brazil will grow by between 1.8% and 5.7% in real terms over the next 12 months, which would represent the fastest growth rate in five years, according to economists surveyed by the country's central bank.

Legal conflicts

* Itaú CorpBanca will not appeal a fine of 5.99 billion Chilean pesos related to loans the bank granted to a group of companies linked to chemical firm Sociedad Quimica y Minera de Chile SA. However, the bank reiterated that it acted in accordance with rules when it extended the loans.

* A member of the Yarur family, which controls Banco de Credito e Inversiones SA, filed a lawsuit against the company's CEO seeking to recover about 1.00 billion Chilean pesos that were allegedly withdrawn from his account without authorization.

* Mexican lender Banco Actinver SA Institución de Banca Múltiple Grupo Financiero Actinver sued Aleatica SAB de CV, claiming that it received less money than it should have when selling shares in the transport company.

* A Brazilian court will examine a so-called popular action case seeking to annul the appointment of Rossell Mourão to a special advisory role at Banco do Brasil SA on the grounds of nepotism. Rossell Mourão is the son of Brazil's new vice president, Hamilton Mourão.

Rating agency notes

* The Mexican government's plan to bolster the country's financial system by increasing potential bank borrowers would be credit positive for Mexican lenders if implemented successfully, Moody's said.

* Higher-than-expected vehicle sales in Brazil entail greater profitability for local captive auto lenders, as higher demand for new cars will raise demand for loans, Moody's said.

* Caixa Econômica Federal's plan to expand its mortgage loan portfolio would support the development of Brazil's residential mortgage-backed security, or RMBS, market, according to S&P Global Ratings.

Growth strategies

* Banco ABC Brasil SA is looking to expand its investment banking activities with a focus on providing financial advisory services for mergers and acquisitions, according to bank executives. The bank expects the planned growth to result in an increase of at least 1 percentage point in its return on equity.

* Bancompartir SA expects its loan portfolio to grow between 12% and 15% in 2019 as the Colombian bank enters new markets and launches a digital wallet application.

In other news

* Chilean financial company Doble Impacto plans to launch the the country's first ethical bank by 2022. The company will work on the bank's design this year and apply for a license in 2020.

* Chilean Finance Minister Felipe Larraín said financial markets commission CMF will complete its absorption of banking regulator SBIF on June 1.

Featured this week on Market Intelligence

* Decoupling from the Fed, Banxico likely to hold rates in 2019 before easing off: Having pushed its benchmark rate to a 10-year high, Banco de México has run out of room to match hikes by the U.S. With inflation easing, the central bank is set to diverge its monetary policy from that of its northern neighbor.

* 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.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.