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Bradesco sets up BAC as US banking platform
Posted on Tuesday, 07 May 2019 13:15
Banco Bradesco is acquiring BAC Florida Bank for USD 500.00 million in cash from Grupo Pellas to establish a platform for its banking operations in the US to provide access to the market for Brazilian clients.
The price implies a ratio of 2.5x tangible book value, based on adjusted USD 194.90 million and taking into consideration USD 10.00 million of redemption of preferred shares.
Miami-headquartered BAC’s main business lines comprise real estate financing, private banking and wealth management, corporate and institutional services, and personal, business and digital account options.
As at 31st December 2018, the lender had total assets of USD 2.24 billion (31st December 2017: USD 2.09 billion), deposits of USD 1.84 billion (31st December 2017: USD 1.71 billion).
It had a book value of USD 206.00 million (31st December 2017: USD 180.00 million; 31st December 2016: USD 164.00 million).
BAC also had a return on average equity of 15.3 per cent (31st December 2017: 10.1 per cent; 31st December 2016: 9.5 per cent).
The group’s common equity tier 1 ratio stood at 13.2 per cent at the end of 2018 (31st December 2017: 12.2 per cent; 31st December 2016: 13.2 per cent).
It posted net profit of USD 29.00 million for the 12 months, up from USD 17.00 million in FY 2017 (FY 2016: USD 15.00 million).
BAC claims to be a leading provider of real estate mortgage loans in Florida to high net-worth foreign nationals, with Brazilian non-resident clients representing 22.0 per cent of the residential portfolio.
The group’s private banking and wealth management arm had total liabilities of USD 1.21 billion and assets under custody of USD 862.00 million, as at 31st December 2018.
BAC represents an important strategic initiative for Bradesco in expanding financial services and products to high net worth and affluent clients through access to a complete and international platform.
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