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Deal buzz; Strategizing

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

Deal buzz

* The three major rating agencies, Fitch Ratings, Moody's and S&P Global Ratings, all affirmed the ratings of Banco de Credito e Inversiones SA following the announcement that the bank will acquire U.S.-based TotalBank.

* Banco Bilbao Vizcaya Argentaria SA accepted Bank of Nova Scotia's offer to acquire the Spanish lender's 68.19% ownership in Banco Bilbao Vizcaya Argentaria Chile SA, as well as its interests in certain subsidiaries, for approximately US$2.2 billion.

* Scotiabank expects to spend up to C$280 million for the merger of BBVA Chile and its local subsidiary, Scotiabank Chile.

* Shareholders of Grupo Financiero Banorte SAB de CV approved the company's planned acquisition of Grupo Financiero Interacciones SAB de CV.

* The government of Rio Grande do Sul postponed a planned offering of Banco do Estado do Rio Grande do Sul SA shares, citing current market conditions.

* Grupo Financiero Galicia SA said that the Argentine central bank authorized the group's sale of minority interest held in Compañía Financiera Argentina SA to Julio Alfredo Fraomeni and Galeno Capital SAU.


* Banco Bradesco SA announced the creation of a new area focused on business management of high-income clients.

* Banco Indusval SA signed an investment agreement with The Hive BR Holding LLC to develop a digital banking platform for unit Banco Intercap SA, catering to small and medium-sized enterprises.

Legal disputes

* Banco Pan SA obtained a court injunction ordering the Brazilian state of Tocantins to pay the bank 20 million Brazilian reais within five days after the state's government failed to transfer payroll loan installments to the bank.

* Argentine bank consumer association ACUBA filed a class-action lawsuit against Banco de Galicia y Buenos Aires SA, citing noncompliance on some of the bank's items.

* Meanwhile, Argentine consumer defense association ADUC filed a class-action lawsuit against BBVA Banco Francés SA over alleged hidden fees on transactions made abroad through the use of debit and credit cards, including purchases made on the internet.

Metrics and guidance

* Banco do Brasil SA CEO Paulo Caffarelli said the bank should see return on equity of above 10% for 2018.

* Banco Indusval, which has struggled to turn a profit in recent quarters, said it has delayed the filing of its third-quarter results due to an ongoing review process.

In other news

* Caixa Econômica Federal is looking for a foreign company to be a minority partner in its instant lottery business Lotex which could be auctioned next year.

* Brazil's House of Representatives approved a bill allowing the use of state workers' fund FGTS for the capitalization of Caixa.

Featured this week on S&P Global Market Intelligence

* BBVA deal to boost Scotiabank's standing in Chile: A recently accepted binding offer will see BBVA Chile merge with Scotiabank Chile, boosting the latter's ranking among Chile's largest banks.

* S&P: 2018 set to be a turning point for credit growth in LatAm: Credit growth among banks in Latin America and the Caribbean is headed for a turnaround in 2018 as economic conditions in the region become more favorable, senior analysts at S&P Global Ratings 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.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.