MercoPress. South Atlantic News Agency

Spanish bank takes leading position in Uruguay’s private financial sector

Vicente Rodero BBVA director for Latinamerica.

One of Spain’s largest bank BBVA is waiting for the final approval from Uruguay’s central bank to disburse 100 million US dollars for the acquisition of France’s Credit (Agricole) Uruguay said Vicente Rodero BBVA director for Latinamerica.

“We expect to have the fusion completed in the first half of 2011 since the integration process is now geared not to loose market share, but rather to increase our share through the sum of the two banks”, said Rodero

“In Uruguay our market share was low and we needed critical mass. With this operation absorbing Credit Agricole Uruguay, our market credit share will reach above 20% enabling us to develop our growth model more aggressively”, added Rodero who said BBVA’s targets were to accompany Uruguay’s economic growth and take advantage of proximity with Brazil, the country’s main trade partner.

Rodero added that BBVA is interested in “making our operations more automatic” promoting “development” and expanding banking services which in Uruguay are still quite low. At global level BBVA is “working satisfactorily” although it will be affected by this year’s crisis admitted Rodero.

“In 2009 our profits reached 1.24 billion Euros and we expect to repeat that in the coming quarters” even admitting that the slowing of the Spanish and Portuguese economies “will have an impact in profits”. In the first quarter of this year profits reached 233 million Euros, up 26% over the same period in 2009.

The expanded BBVA Uruguay will have assets totalling 1.5 billion Euros, 657 million Euros in credits and 1.3 billion Euros in deposits

BBVA is a global group made up of five different business areas: Spain and Portugal; Mexico, South America, United States and Wholesale Banking & Asset Management. It is also one of the few international groups with a significant presence in China.

The group is present in 30 countries, has a staff of 104.000, 884.373 shareholders, 48 million clients and 7.460 offices worldwide.

BBVA Uruguay has focused business in corporate clients, consumer credit and has an important branch in support of farming, one of Uruguay’s main economic sectors.

It currently holds a 9.2% share of the private banks’ market, nine offices and a staff of 185. In 2009 benefits reached 4.4 million Euros with a profit ratio over resources of 9% with 0.9% delinquency and assets totalling 637 million Euros.

Credit (Agricole) Uruguay is one of the leading private sector banks in Uruguay with a credit market share of 14.8%. It has 36 offices, 480 staff and 874 million Euros in assets. Profits in 2009 totalled 5.2 million Euros with a ratio over assets of 11% and a delinquency rate of 0.6%.