Although Grupo Aval S.A. de Colombia owns both financial entities, the conglomerate has decided that the two banks will compete separately in the Panamanian market.
After Grupo Aval S.A. of Colombia signed an agreement to acquire Multibank Financial Group of Panama, the transaction process is expected to be completed in the second quarter of 2020.
For Grupo Aval de Colombia S.A., owner of BAC Credomátic, this transaction represents an important step in the development of its regionalization strategy, since up to June 2019 Multibank Financial Group (MFG), holding company of Multibank Panama, had assets of approximately $5 billion and a book equity of $560 million, the Colombian group informed on October 31st.
Because of the slowdown in the issuance of loans, in 2018 the profits of banks in Costa Rica grew just 3% over what was recorded in 2017.
Figures from the Central Bank of Costa Rica show the deceleration reported in loans granted during the first nine months of last year, detailing that up to December 2017 the credit portfolio to the private sector registered an 8% year-on-year increase, while the indicator concerned up to September 2018 dropped to 5%.
Starting from May companies will be able to use intellectual property rights, crops or inventories as collateral for bank loans.
The law which goes into effect on May 20 allows accounts receivable, movable property (except vehicles), stocks, crops, inventories of merchandise and commercial patents to be used as collateral for loans.
Aside from the Colombian Grupo Aval, the Spanish company Banco Popular may also be in negotiations to acquire Citi's entire consumer banking operation in Central America.
The sixth largest bank in Spain, which at the moment has no presence in Central America, could be interested in acquiring the consumer banking operation that Citi has put up for sale in Costa Rica, El Salvador, Guatemala, Nicaragua and Panama.
The banks Davivienda and Grupo Aval, already present in Central America, could be in talks with Citi to acquire its consumer banking operations in the region.
The sale of assets of Citigroup in 7 countries in Latin America represents an expansion opportunity for Colombian banks.
Spending is slowing in final household consumption, imports of consumer goods, bank lending for consumption and the monthly index of economic activity trade.
Following the trend of slowdown seen in overall economic activity, consumer spending by Costa Ricans has lost dynamism, which is mainly seen in the expenses made at supermarkets, gas stations and restaurants.
A group of Central American business people are building the luxury resort Dreams Las Mareas in Guanacaste, Costa Rica.
Operations are expected to start in November at the luxury resort Dreams Las Mareas in Guanacaste, whose construction started months ago having been set up by a group of businessmen in the region, using an investment of $125 million.
On December 4th Fitch Ratings will hold a conference entitled 'Challenges and Opportunities for Structured Finance and Infrastructure in Central America and the Caribbean.'
Securitization of Assets, an Option for Capital Markets in the Region, is one of the subjects to be discussed in the event's agenda. Participants will include Marielena Garcia, SVP of Investment Banking at MMG Bank Corp, Alberto Gutierrez, president of Titularizadora Colombiana, John Rauschkolb, General Manager La Hipotecaria and Diego Torres, vice general manager of BHD Valores Puesto de Bolsa.
Since 2007 Colombian bankers have made progress in the region, led by Bancolombia with $3,216 million and Grupo Aval with $2.821 million.
For example, in Panama they have operations with "... large international banks because it is considered a tax haven, where it is possible to make investments and transactions swiftly and without a lot of questions being asked by local controlling entities," noted an article in portafolio.co.
The $490 million transaction will be closed after being approved by the respective authorities, with a probable distribution of extraordinary dividends of $140 million.
Grupo Aval Acciones y Valores S.A., through its subsidiary Banco de Bogotá, has agreed to acquire 100% of Banco Bilbao Vizcaya Argentaria de Panama.
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