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Santander sells the Popular subsidiary in the United States for 444 million euros

The operation sheds some capital gains on the financial group of 170 million

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Santander sells the Popular subsidiary in the United States for 444 million euros

Banco Popular, a subsidiary of Grupo Santander, announced this Friday sale of entire capital of its subsidiary Totalbank, its subsidiary in United States, for a price of 528 million dollars (about 444 million euros) to Chilean entity Credit Bank and Investments (BCI). The transaction is a surplus in accounts of Popular 170 million euros. And it will have a positive impact on its capital CET1 (fully-loaded) of 60 basic points.

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Likewise, operation is expected to have a positive effect on CET1 capital (fully-loaded) of Grupo Santander of 5 basic points, and a non-material impact on results.

The transaction is subject to usual regulatory conditions and authorizations, and is expected to culminate during second semester of 2018, as market supervisor recalls.

TotalBank, acquired by Popular in 2007, is a commercial bank headquartered in state of Florida and has 18 offices, about 300 employees and 3.106 billion dollars (2.608 billion euros) in assets.

"We are fulfilling objectives that we mark after acquisition of Banco Popular", said about operation president of Banco Santander, Ana Botin, which has put in value that entity has managed to expand capital, strengn balance and Regain trust of Popular customers after ir acquisition.

"Although TotalBank is a good bank, it does not fit our presence in United States, so we decided to sell it to BCI, a solid entity that we know well," added president of Cantabrian Bank.

Santander bought Banco Popular at symbolic price of a euro after its resolution on June 7, 2017 and has since invested 7 billion euros to strengn its balance, after successfully closing capital increase of month of July. The sale of TotalBank was included in valuation of Popular when operation was announced, explained Santander.

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