LatinFinance - November/December 2017 - 39

of the country's economic and financial
rebound, with many looking for ways to
help ramp up growth.
In October 2016, Santander Río spent
$1.4 billion to buy Citi's consumer business,
which included the US bank's credit card,
personal loan and retail brokerage business
in Argentina.
"This was an excellent opportunity for
us," says Guillermo Glattstein, the head of
strategic planning at Santander Río, the
Argentine division of Spain's Santander.
In bidding rounds that also saw Citi
offload its retail banking and credit
card businesses in Brazil and Colombia,
Santander Rio beat a host of contenders,
including Banco Macro and Banco Galicia,
for the Argentine business. Other banks,
including BBVA Francés, HSBC, Itaú and
Supervielle, expressed interest in bidding
but later bowed out.
The purchase of Citi's consumer business
will help Santander Río increase its market
penetration, Glattstein says.
"If you compare our banking system to
countries of similar size, it becomes clear
that Argentina's system is fragmented," he
says. With so many banks slicing up the
market, "it raises the question if all can

continue to play," he says. "So scale is
going to be fundamental going forward."
Santander Río felt some effects of the
acquisition in the second quarter this
year, although its net income fell 8%
year-on-year to 1.25 billion Argentine
pesos. But the bank increased its total
deposits to 203 billion pesos by the end
of June, giving it a 12.3% market share,
the highest level among Argentina's
private sector banks. Santander Río also
expanded its loan book to 150 billion
pesos, again placing it at the top of the
private sector banks.
While Argentina's incipient economic
recovery remains fragile, Glattstein says
he believes the country is poised for a
potential lending boom once economic
growth takes hold.
"Despite the economic challenges
over the past few years, ordinary
Argentines and Argentine businesses
have very low debt levels," Glattstein
says.
He adds that credit growth has already
started to pick up and will likely continue,
particularly in commercial loans and
mortgages. LF

BANK OF THE YEAR BOLIVIA

MERCANTIL SANTA CRUZ

Mercantil Santa Cruz uses
well-timed acquisitions to
enhance its position as the
country's largest financial
institution
In October 2016, the Bolivian lender
Mercantil Santa Cruz purchased Banco
PyME Los Andes ProCredit from
Germany's ProCredit. The deal, which
Mercantil Santa Cruz financed with its own
funds, contributed to its total assets and
increased its market share. Los Andes was
the leading lender for small and mediumsized enterprises (SMEs) in Bolivia.
"The impact from the acquisition is
twofold," says CEO Darko Zuazo. "It's a
confirmation of our leadership in Bolivia
with an incredible boost to our image.
Second is the diversification of our loan
portfolio, which improves margins."
Zuazo says the deal has also broadened

Exploring new markets
Achieving goals together
Mercantil Servicios Financieros is a Venezuelan
financial corporation with more than 90 years of
experience, which offers a wide range of financial
products and services in the Banking, Insurance
and Wealth Management businesses, with a solid
presence in Latin America, U.S. and Europe.

Mercantil, empowering your world

November/December 2017 - L ATINFINA NCE.COM 39
http://www.msf.com http://www.LATINFINANCE.COM
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