The Mexican unit of Spanish banking giant Banco Santander reached an agreement with Scotiabank Inverlat to purchase a consumer loan portfolio worth 4.1 billion pesos ($300 million) to expand its customer base.
The deal will boost the loan portfolio and improve market share in the personal lending segment, Santander Mexico said in a statement.
“We are very pleased to have reached an agreement to acquire this part of Scotiabank’s consumer lending portfolio, an agreement that is aligned with our strategy focused on this highly profitable product,” Santander Mexico CEO Marcos Martinez said.
Some 97 percent of the more than 47,000 customers are in the “attractive middle-high income segment,” helping expand the current customer base, Martinez said.
The deal provides an opportunity to cross-sell Santander Mexico’s wide range of products, opening new business channels, the executive said.
Santander Mexico expects the purchase to close in the next three months, with closing subject to the acquisition of loan documents, approval by federal regulators and other standard conditions. Grupo Financiero Santander Mexico is the country’s third-largest bank, trailing only BBVA Bancomer and Citigroup Banamex.
The bank has 930.4 billion pesos ($68.16 billion) in assets, more than 11 million customers, 1,042 branches and 15,404 employees.