Spain's BBVA (NYSE: BBV) aims to become one of Chile's top three financial groups by 2010, according to documents obtained by BNamericas.
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"We closed 2007 with significant improvements in different areas: we won market share in consumer [loans], mutual funds, SMEs and corporate banking," BBVA Chile CEO Ignacio Lacasta said in a letter sent to employees.
Starting this year, the group will begin unfolding the second stage of its CXC plan with only one goal in mind, Lacasta said.
"In the next two years, we will make the leap that will put us in the forefront of the local financial system," he said.
BBVA Chile is the system's fourth largest bank with 4.81tn pesos in loans (US$10.7bn), or an 8.1% market share, as of January 31.
Chile's banking system is dominated by Santander Santiago (NYSE: SAN), a unit of Santander (NYSE: SAN) and Banco de Chile (NYSE: BCH) with 20.5% and 19.8% respective market shares as of end-January.
On Thursday, BBVA Chile said it would on Wednesday (Mar 26) ask shareholders to approve a 25.32 peso-per share dividend, equal to 30% of the bank's profits in 2007.
CONSUMER BUSINESS
In October last year, the bank said it aimed to triple its consumer loan business by 2010, reaching an 8.5% market share from the 5.58% share it had back then.
BBVA Chile increased consumer lending 200 basis points last year to achieve a 7.45% market share as of end-January.
Market analysts believe the BBVA unit will likely make an acquisition to boost its presence in the consumer financing business and many see the bank going back for a juicy credit card deal with Chile's largest supermarket chain D&S (NYSE: D&S) that flopped last year.
Last March, antitrust regulators rejected the planned merger between D&S and the country's largest retailer Falabella.
When announced in April 2007, the Falabella-D&S merger halted exclusive talks between BBVA and D&S's credit card unit Presto.
In Chile, BBVA also operates the country's largest private pension fund manager AFP BBVA Provida (NYSE: PVD) - which managed US$34.3bn in assets as of December 31 - and also owns a 51% stake in Chile's largest car financing company Forum.
