BBVA has closed the sale of 100% of the share capital of BBVA Paraguay to Banco GNB Paraguay, subsidiary of Grupo Gilinski, after receiving the necessary regulatory authorizations. The total amount of the sale amounts to approximately 250 million dollars (about 210 million euros). The operation will generate a net loss of tax of about 9 million euros, due to the benefits that BBVA has been earning from the subsidiary in this period, and a positive impact on the CET1 ‘fully-loaded’ capital ratio of around six basic points. These impacts will be reflected in BBVA’s financial statements in the first quarter of 2021.
The operation that is completed today was announced in August 2019. BBVA Paraguay has some total assets of approximately 1,920 million dollars (about 1,640 million euros), with data at the end of the third quarter of 2020. BBVA’s business in Paraguay occupies the fourth position in the local market, both by volume of loans, with a 8.7% share, and by deposits, with 9.5%.
It may interest you
Once the two financial entities (buyer and seller) are integrated, Banco GNB Paraguay will become the first for deposits in Paraguay, with total assets of 3,270 million dollars (about 2,784 million euros), and a share of 16%, with data from the end of September.
“BBVA maintains its commitment to Latin America and it will continue to invest in the region, which continues to be a strategic area for the group’s growth, “the entity chaired by Carlos Torres highlighted in a note.