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Scotiabank se afianza como el tercer banco múltiple privado con la adquisición del Banco Dominicano del Progreso

El 16 de agosto Scotiabank (SB) anunció el acuerdo de compraventa del Banco Dominicano del Progreso (BDP) por el 97.44% de las acciones, por una cifra estimada de USD $330 MM. Con esta compra Scotiabank se consolida como el tercer banco privado del país, con un 9% de los depósitos totales, el 10% de la cartera crediticia, y el 14% de las sucursales a nivel nacional.

Informe de V2A sobre la Banca de RD - Enero a Junio 2018

Los cinco principales bancos múltiples de la República Dominicana (Top 5) siguen mostrando un alto nivel de rentabilidad en la primera mitad del 2018 (ROE antes de impuestos del 23.8%). Les acompaña un crecimiento económico superior al 6% que podría peligrar si los precios del petróleo siguen subiendo y el Banco Central Dominicano tiene que seguir aumentando la tasa de intermediación bancaria. El semestre cierra con la noticia de la compra de Banco del Pro-greso Dominicano por parte de ScotiaBank. Esta compra deja a tan solo 4 bancos con el 86% de los activos de la banca múltiple (75% de los activos del sistema financiero dominicano) y a otros 13 bancos con el 14% restante. Por tanto, las oportunidades de seguir creciendo inorgánicamente por parte de los cuatro grandes se reducen considerablemente, dada la limitada cuota de mercado de los demás bancos múltiples. Como veremos en el informe, Scotia se afianza en la cuarta posición aunque lejos todavía de BHDLeón y tendrá oportunidades de consolidación de sucursales dada la ubicación de las del Banco del Progreso.

Popular becomes the indisputable leader of the auto financing industry with the acquisition of Reliable

On August 1st, Banco Popular announced the acquisition of Reliable, the Wells Fargo auto finance business in Puerto Rico. The agreement involves the purchase of ~$1.6B in retail auto loans and ~$360M in primarily auto related commercial loans. With this acquisition Popular becomes the leader of the Auto financing sector with a 49% auto loan market share and a 69% share in auto leasing.

Puerto Rico Post-2017 Hurricane Season: Update and Revised Outlook

More than eight months have transpired since Hurricanes Irma and Maria made landfall in Puerto Rico on September 6 and September 20 of 2017, respectively, and while some progress has been made despite myriad constraints, logistical challenges, diverse collective action problems, and a beleaguered pre-hurricane context, much remains to be done. Many local residents and organizations are still reeling from the catastrophic shock and ensuing adverse cascading effects caused by the superstorms, particularly those in more remote areas. Shortly following the hurricanes, in November 2017, V2A published the first of a series of special post-hurricane issues providing a brief overview of the pre-disaster context, lessons learned from past disaster events, expected macro and sectoral impacts of the 2017 hurricane season, and an analysis on what Puerto Rico could expect with respect to the inflow of post-disaster relief funds.1 In this critical juncture, eight months after impact, we deem it imperative to take stock of the progress made, explore the short-, medium-, and long-term outlook for the local economy and continue to survey emerging opportunities.

Puerto Rico Post-2017 Hurricane Season: Initial Insights and Outlook

In the aftermath of a catastrophic natural disaster like the one experienced in Puerto Rico during September 2017, an acute sense of uncertainty often takes hold of the affected people and organizations. Households, business firms, nonprofit entities, and the public sector need timely, objective, accurate and reliable information and insights to better inform their strategic planning and other decision-making processes. This special V2A issue, the first of a series of issues, seeks to narrow this information gap by providing a preliminary assessment and outlook under this new Post-Hurricane María reality. It also serves as a succinct, yet comprehensive one-stop read containing up-to-date and relevant information from a variety of sources.

Are community banks losing the battle in South Florida?

Since the financial crisis of 2007-2008, South Florida's banking industry* has undergone a transformative consolidation process. Large, out-of-state banks have been steadily gaining market share, many times displacing smaller, local community banks which have been unable to compete against banking juggernauts like Wells Fargo and Bank of America, Miami Metropolitan Area’s largest banks. Mergers and acquisitions activity, as well as FDIC-assisted bank failures, have been pervasive throughout Florida since 2009, leading the nation in bank failures in 2010 with 29 in total. Since 2009 there has been a steady but slow improvement in the banking sector. Asset quality has improved, loan activity has increased and the majority of banks are well capitalized. Nevertheless, banks in South Florida still face considerable challenges. A highly competitive environment with narrow margins, subpar loan growth and a slowdown in mortgage refinancing transactions, have made it difficult for banks to increase income and improve returns.

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