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03-05-2010

BBVA strengthens its presence in Uruguay with the purchase of Crédit Uruguay Banco

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  • BBVA Uruguay will become the country's No. 2 private bank, with a market share of 24% in loans.
  • Rafael González Moya: "The Crédit Uruguay Banco acquisition strengthens BBVA's presence in the country and underscores the Group's confidence in the Uruguayan economy".
  • The merger of Crédit Uruguay Banco with BBVA Uruguay will start following approval from all of the relevant regulatory bodies.

BBVA Uruguay today signed an agreement with French financial group Crédit Agricole S.A. to acquire Crédit Uruguay Banco, which will make BBVA the No. 2 private financial institution in Uruguay, with a 24-percent share of the loan market. The transaction meets both of BBVA's basic criteria for its profitable growth strategy: it creates value for shareholders from the beginning and makes great strategic sense.

The Crédit Uruguay Banco purchase re-affirms the BBVA Group's commitment to Uruguay. Following the acquisition, BBVA Uruguay will have assets of 1.511 billion euros, loans worth 657 million euros, and customer resources of 1.305 billion euros. 

The takeover is contingent on approval from Uruguayan and Spanish authorities. The merger of Crédit Uruguay Banco with BBVA Uruguay will begin after the bank receives approval from all of the appropriate regulatory bodies, a process BBVA expects will be completed in the first half of 2011.

"This transaction underscores the BBVA Group's confidence in Uruguay," said Rafael González Moya, executive chairman of BBVA Uruguay. "This is an economy which is proving that it has a high degree of financial soundness, along with great stability and growth."

"Crédit Uruguay Banco has a significant presence in the Uruguayan financial market, which will complement BBVA Uruguay's branch network and range of products and services," Rafael González Moya added.  "This acquisition is excellent news for our shareholders, employees and customers."

BBVA is a global group made up of five business divisions: Spain and Portugal, Mexico, South America, the United States and Wholesale Banking & Asset Management. In addition, it is one of the few major international corporations to have a sizeable presence in China.   BBVA has approximately 104,000 employees in 30 countries, 884,373 shareholders, 48 million customers and more than 7,460 branches worldwide.

Substantial synergies

BBVA Uruguay is a lender with a long history in the Uruguayan financial market and has geared its business to both corporate customers and the public. It also has an important role in providing financing to businesses involved in agriculture, one of the country's leading industries. 

Among private banks, it currently has a loan market share of 9.2%, with nine branches and 185 employees.  BBVA Uruguay in 2009 had net income without inflation adjustment of 4.4 million euros, with a return on equity (ROE) of 9%, a non-performing loan ratio of 0.9% and assets worth 637 million euros.

Crédit Uruguay Banco is one of the biggest private banks in Uruguay, serving corporate clients, small- and mid-sized businesses and retail customers, with a 14.8-percent share of the private bank loan market.

It currently has a branch network of 36 outlets and 480 employees.  It had net income without inflation adjustment of 5.2 million euros in 2009, with a return on equity (ROE) of 11%, a non-performing loan ratio of only 0.6%.  It has assets of more than 874 million euros.

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