With the integration of Targobank Spain, Abanca will reach a business volume of 112,544 million euros, 5.2% higher than the current one; loans amount to 49,219 million, 6.9% more; deposits total 51,390 million, with an increase of 4.4%, and the number of branches reaches 727, 7.5% more
The Abanca banking group, chaired by the Spanish Venezuelan banker Juan Carlos Escotet, completed the acquisition of the Spanish subsidiary of the German bank Targobank, through which the bank’s strategic lines of business in Spain will be strengthened.
Credit Mutuel, the French group that operated the Targobank subsidiary, began a divestment process in mid-May, largely because the entity has been carrying losses since 2016 and adds losses of more than $328 million.
Due to the losses, the group made a nominal reduction of the shares for an amount of 156 million euros to offset the losses of previous years. That year it closed with a volume of assets of 3,516 million euros and a credit portfolio of 2,819 million.
These conditions facilitated the purchase for Abanca, and now Targobank joins the family of companies controlled by Escotet, also president of the Venezuelan bank Banesco.
«The acquisition of Targobank Spain would strengthen strategic lines of business for Abanca, such as financing for families and companies, as well as their linkage through value products such as insurance, means of payment or investment funds. The operation allows progress in commercial penetration, in efficiency and has a very small impact on capital, “says Francisco Botas Ratera, CEO of Abanca.
*Read also: Juan Carlos Escotet, president of Banesco, is the only Venezuelan on the Forbes list of billionaires
In 2017 Abanca acquired the former consumer division of Banco Pastor; a year later, the Portuguese subsidiary of Deutsche Bank, in 2019 bought the activity of Banco Caixa Geral in Spain and in 2021, Bankoa.
With the integration of Targobank Spain, Abanca will reach a business volume of 112,544 million euros, 5.2% higher than the current one; loans amount to 49,219 million, 6.9% more; deposits add up to 51,390 million, with an increase of 4.4%, and the number of branches reaches 727, 7.5% more.
Crédit Mutuel also put up for sale the two insurers it has in Spain, Agrupació and Atlantis, purchases that Axa negotiates exclusively for 318 million euros.
*With information from The Economist
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