Banco Santander's (STD) Brazilian unit President Marcial Portela denies reports the bank is planning to sell an equity stake to one of its competitors. "(Santander) does not need capital," says Portela. Brazilian banks mentioned as buyers are also denying reports of talks. (earlier)
With mounting losses in its home market, Spain's Banco Santander (STD) is under political pressure to unload at least a portion of its profitable Brazilian unit. Likely bidders might be Banco do Brasil (BDORY.PK) or Bradesco (BBD). Shares of Santander's Brazilian unit have been on the rise this year in anticipation of the sale.
A small transaction, but significant, Banco do Brasil's (BDORY.PK) $6M purchase of EuroBank marks the first acquisition of a U.S. retail lender by a Brazilian bank. Brazil's largest lender, BB has made it a strategy to expand through overseas purchases.
Loans for farm equipment grow 64% from a year earlier as surging prices for beans, coffee, and sugar encourage heavy borrowing by Brazilian farmers. Banco do Brasil (BDORY.PK), the largest provider of farm loans, offers a government subsidized rate of 5.5%, compared to the overnight rate of 10.75%.