The Spanish banking group BBVA has sold 100% of the capital stock of BBVA Paraguay to Banco GNB Paraguay, a subsidiary of the Colombian Grupo Financiero Gilinski, for 250 million dollars (205 million euros), after receiving the necessary regulatory authorizations.
The operation, announced in August 2019, will generate a net tax loss 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 basis points.
These impacts will be reflected in BBVA’s financial statements in the first quarter of 2021, the Spanish group reported this Friday to the National Securities Market Commission (CNMV).
BBVA Paraguay It has 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% market share, and by deposits, with 9.5%.
Once the two financial entities are integrated, the GNB Bank Paraguay will become the first for deposits in the South American country, with assets of 3,270 million dollars (about 2,784 million euros) and a share of 16%, with data from the end of September.
BBVA has ensured that it maintains its commitment to Latin America and that will continue to invest in the region, which continues to be a strategic area for the group’s growth