S&P Global Market Intelligence presents the week's latest news and trends in Latin American banking.
Cut a deal
* Grupo Supervielle SA confirmed that it reached a deal to acquire stockbroker InvertirOnLine.com Argentina SA for US$38.5 million, or about 945 million Argentine pesos. Aside from the initial consideration, the deal reportedly includes two additional payments based on the firm's 2018 results which could bring the total deal value to between 1.20 billion and 1.40 billion pesos. InvertirOnline operates in Colombia, Chile, Mexico and the U.S., but the deal only includes the firm's two Argentine units.
* Accendo Banco SA Institución de Banca Múltiple expects to complete the acquisition of Deutsche Bank México SA Institución de Banca Múltiple in June, according to CEO Gustavo Vergara. The bank plans to raise its capitalization to 2.50 billion Mexican pesos once it finalizes its merger with Deutsche Bank México.
Game plan
* Bancolombia SA allocated $100 million for digital innovation and transformation initiatives in 2018 and will invest between 60% and 70% of that amount within Colombia. The bank is also reportedly developing a nonbanking platform for an online marketplace called Rótalo.
* Argentine stock exchange Bolsa de Comercio de Rosario plans to invest 300 million pesos in initial capital for its new commercial bank. The amount will be dedicated to granting credit to small and medium-sized agricultural companies in the region.
Paving the regulatory road
* Colombia published a technical document containing new capital criteria following Basel III recommendations for entities in the financial system.
* Panama's financial regulator SBP is currently studying the creation of an emergency liquidity fund for banks. The fund would only be tapped during emergencies and would not be used to maintain required liquidity levels.
* Peruvian banking and insurance regulator SBS urged Congress to pass a bill before June 1 to give the watchdog supervisory authority over the country's more than 600 savings and loan cooperatives, which have been flagged as a possible weak link in anti-money laundering controls.
* Brazil's central bank authorized banks to access an additional year of customers' banking history data in the SCR Credit Information System, as it aims to bolster competition and make credit cheaper.
Earnings highlights
* Banco Indusval SA's earnings remained in the red in the first quarter of 2018, booking a net loss of 69.1 million reais.
* Other major banks in the region fared better, with Grupo Supervielle's net income rising 147.6% year over year, Caixa Econômica Federal's advancing 114.5% and Grupo Financiero Galicia SA's jumping 109%. Banco del Estado de Chile also booked a 4.1% annual rise in its profit.
Featured this week on S&P Global Market Intelligence
* While an unlikely victor, Colombia's Petro could still 'make markets nervous': Colombia's upcoming presidential elections, while unlikely to result in substantial policy changes, could signal the start of a political shift amid a delicate time for both the country itself and the broader Latin American region.
* Colombia's banking majors struggle with expenses, asset quality in Q1: The combined profit of Grupo Aval, Bancolombia and Grupo Bolívar fell 6.73% year over year in the first quarter.
* 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.
