On August 26, ABANK began operations in the country, a banking institution that emerged as a result of the acquisition of Banco Azteca's shares by Grupo Perinversiones.
At the end of June of this year and after the Superintendence of Competition accepted the request for concentration, Perinversiones S.A.
Banco Industrial will be investing $2.5 million in opening six new branches in El Salvador.
Banco Industrial de Guatemala has announced the opening of six new branches in El Salvador, in which will it invest $2.5 million. The first three branches will open before the end of the first quarter of 2014 and will be located in Sonsonate, San Miguel and Plaza Mundo.
With amounts from $5 to over $50,000, people bought 1412 shares in Banco Azul which will begin operations in 2014.
This amount makes up the $60 million needed for the start of operations by the entity which was formed last September with a capital of $20 million. Of the 1,412 shareholders 97% are natural persons and 3% are companies.
"... When we announced the creation of Banco Azul El Salvador, on September 23rd, I said that one of our market differentiators, would be to convert ourselves into an attractive investment instrument for Salvadorans through the possibility of becoming shareholders," said Carlos Araujo, president of the institution.
The new bank, with a capital of $20 million, will begin operations in the second quarter of 2014 in the Salvadoran plaza.
On Monday September 23, a group of Salvadoran businessmen signed an act of constitution for Banco Azul de El Salvador, which is chaired by Carlos Enrique Araujo and consists of 100% of shareholders from that country.
During its first year of operations, Banco Azul intends to open 10 branches, 7 in San Salvador and another 3 in the interior of the country.
Banco Azul, which is to join the 10 other privately owned banks, is characterized by having Salvadorans shareholders.
The Superintendency of the Financial System is considering the application of a Salvadoran entity which, if there are no objections, will proceed to incorporate the company Banco Azul de El Salvador S.A. in August.
Eleconomista.net reports: "Among the founders of Banco Azul are: Carlos Enrique Araujo, Fernando Alfredo de la Cruz Pacas, Manuel Rodríguez Harrison, Raúl Navarrete Belismelis, Luis Álvarez Prunera and Óscar Armando Rodríguez, who make up 87.95% of the shareholding. "
With three agencies in San Salvador, Banco Industrial will begin operations.
Alicia Maria Mayorga, president of the institution in El Salvador said they already have planned an expansion for next year with the opening of new agencies and more products and services.
"Juan Miguel Torrebiarte, president of the BI corporation, said that the arrival in El Salvador is a major event for the financial group, because through this new bank they will consolidate their presence in the Central American Northern Triangle (Guatemala, El Salvador and Honduras ) as well as allowing them to offer their present and potential customers greater regional coverage and services to facilitate trade", reported Elperiodico.com.gt
As part of an expansion plan, the bank opened two new branches.
With the two new branches at Torre Futura and Torre Avante, the financial institution has a total of 55 throughout the country.
Sergio Cruz, vice president of Personal Banking and Branches of Scotiabank, told Laprensagrafica.com, "... this year we will open one or two more service points and during the next three years we expect to have between seven and 10 additional branches.
The bank plans to open ten new branches in 2011, adding up to 52 in the country.
Luis Niño, President of the Board of Directors of Banco Azteca El Salvador, said they want to increase the local market share by doubling its loan portfolio.
He added to Prensagrafica.com: "We put millions in loans. The majority are small amounts, because we provide financial support to low-income people. Our average credit is between $ 450 and $ 500."
The Guatemalan financial group plans to open 27 new branches next year in El Salvador.
Flavio Montenegro, General Manager, told Prensa Libre the group already has 23 branches, with the new openings it will consolidate presence in Salvadoran market.
"First, we will consolidate in El Salvador and then will start working in the other markets (Central America)," added the executive.
The Guatemalan bank will invest $20 million in the opening of five agencies in El Salvador.
Luis Lara Groject, Banco Industrial's manager, commented that the opening had been planned for May but the development of information systems took longer than expected.
According to elperiodico.com.gt the new Salvadoran branches will have $20 million worth of capital initially.
The offer to buy BAC-Credomatic made by Banco de Bogotá confirms that Colombia’s large financial groups are seeking to expand their borders.
An article in Portafolio.com.co remarks that BAC has so far not responded to the Colombians. The financial website also lists the international operations of Colombia’s financial institutions such as Colpatria, Davivienda and Bancolombia.
Both "Banco Industrial" and G&T Continental are moving forward with their expansion plans in Central America.
Banco Industrial will open an office in El Salvador in May 2010, while G&T Continental plans to enter the Costa Rican market in the medium term. G&T already operates in Panama and El Salvador.
Diego Pulido, director at "Corporación BI", parent company of Banco Industrial, said in a Prensalibre.com article that "...
The bank plans to expand its presence to 39 branches, from the 29 offices it currently operates in El Salvador.
The announcement was made by Luis Niño de Rivera, president of the board, who remarked that the bank has so far created 445 jobs and will employ 100 more people next year.
"After just three and a half months of operating in the country, Banco Azteca already has around 50.000 customers and $19 million in deposits.
After two years of proceedings before financial authorities, the bank will start operations next July.
The president of the Salvadoran Banking Association (ABANSE), Armando Arias, pointed out the benefits to the consumer with new financial institution entering the market.
Guadalupe Hernández wrote in Elsalvador.com: "The Azteca Bank was born in 2002 as a multiple-banking institution, and it has come to establish itself as one of the five largest in Mexico. It belongs to Grupo Salinas, which is also one of the largest business conglomerates in that country. The market niche in which the institution is working is mortgage financing and consumer loans for the middle and working class."