The shareholders of Banco Santander Chile have approved the company’s acquisition of 51% stake in Santander Consumer Chile for CLP62.1bn (£69.8m) from SKBergé Financiera.
The purchase price corresponds to the 51% stake, held by SKBergé Financiera. In March this year, the bank signed an agreement with SKBergé to acquire its 49% stakein Santander Consumer Chile.
If the deal is approved by the Financial Markets Commission, Banco Santander Chile will consolidate the results of the subsidiary in its subsequent financial statements.
Santander Consumer Chileholds the second largest portfolio of automobile loans in the country
Santander Consumer Chile is claimed hold the second largest portfolio of automobile loans in the country, corresponding to CLP407bn (£457.4m) at the end of March 2019. More than 30,000 cars are financed each year across the national market.
Banco Santander Chile president Claudio Melandri said: “The automobile market in the country has stood out for strong growth, with the sale of cars expanding to double digits in the last four years.”
“This purchase will allow the Bank to enter this high-growth business with consistently positive financial results, which will allow us to expand with new alliances, businesses and customers.”
Last year, Santander Consumer Chile earned a net profit of CLP11bn (£12.36m) and achieving a market share of 8.2% in new car financing and thus had become the second largest auto financing company in the country.
In December 2018, the total loans forwarded by Santander Consumer Chile reached CLP388bn (£436.6m).
As the largest bank in Chile, in terms of loans, the bank had total assets of CLP42,031bn (£47.2bn), with outstanding loans net of allowances for loan losses of CLP30,289bn (£36.45bn), with total deposits of CLP22,032bn (£26.56bn) and equity of CLP3,331bn (£4bn) as of 30 June 2019.
The bank offers a range of commercial and retail banking services including in Chilean Peso and foreign currency denominated loans to finance a variety of commercial transactions, trade, foreign currency forward contracts and credit lines and a variety of retail banking services, including mortgage financing.
