Banco Santander Río
Encyclopedia
Banco Santander Río is a commercial bank
and financial services company and affiliate of the Santander, Cantabria
(Spain
) based Grupo Santander
. Based in Buenos Aires
, its banking operations are the third largest in Argentina
, as well as the largest among all privately-owned banks in the country.
of the same name
) was established on May 14, 1968, via the acquisition of the Banco del Este by Pecom, a private holding company owned by the Pérez Companc family. The Pérez Compancs had established themselves in the Argentine business world relatively recently, through the success of the Compania Naviera Pérez Companc, a shipping
company established in 1946. Gregorio Pérez Companc
, the adoptive heir to the helm of the family conglomerate, purchased the bank from the Pérez Companc Foundation (led by his sister, Alicia) in 1993.
Pérez Companc, for whom Banco Río de la Plata financed a number of acquisitions during President Carlos Menem
's privatization
drive (for significant stakes in Telecom Argentina
, freight rail carrier Ferroexpreso Pampeano
, electric distributor Transener
, gas distributor TGS
, and numerous others) ultimately sold a controlling stake in the bank (35%, with an option to buy
for another 15%) to Grupo Santander
in May 1997 for US$1.1 billion, upon which it was renamed Banco Río, and listed in the Buenos Aires Stock Exchange
. Its most important acquisition during the partnership with Santander was that of Banco Tornquist
, among the most traditional names in Argentine banking. Pérez Companc sold his remaining 18.5% share in February 2001 to Merrill Lynch
, which later sold their stake to Santander.
Santander Río is a majority-owned subsidiary of the Santander Group through its holding company
, ABLASA, with 79% of its equity, and 99.3% of its outstanding shares. Its services include retail banking
, debit and credit cards, consumer and commercial loans, mortgages, fixed-term deposits, money transfers, cash management, and other banking operations processing services to businesses and individuals, as well as to small and medium businesses
. Santander Río Seguros is the bank's insurance
arm, and Santander Río Sociedad de Bolsa, a brokerage house, its sole subsidiary. The bank also has a majority stake in Visa
Argentina, Gire (a wire transfer
service), Banelco (ATM
), and Interbanking (an offshore banking unit), among others.
The bank, the third largest in Argentina, maintains deposits of around US$4.8 billion (7% of the total), and a lending portfolio of US$3.8 billion (nearly 9% of the total). Banco Río operates 262 branches, nationwide, and employs over 5,000; its network of Banelco ATMs, totaling over 1,500, is the most extensive in the country.
In May 2011, Banco Santander Río filed with the SEC to riase up to $100 million in an initial public offering.
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
and financial services company and affiliate of the Santander, Cantabria
Santander, Cantabria
The port city of Santander is the capital of the autonomous community and historical region of Cantabria situated on the north coast of Spain. Located east of Gijón and west of Bilbao, the city has a population of 183,446 .-History:...
(Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
) based Grupo Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
. Based in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
, its banking operations are the third largest in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, as well as the largest among all privately-owned banks in the country.
Overview
The Banco Río de la Plata (named for the neighboring estuaryEstuary
An estuary is a partly enclosed coastal body of water with one or more rivers or streams flowing into it, and with a free connection to the open sea....
of the same name
Río de la Plata
The Río de la Plata —sometimes rendered River Plate in British English and the Commonwealth, and occasionally rendered [La] Plata River in other English-speaking countries—is the river and estuary formed by the confluence of the Uruguay River and the Paraná River on the border between Argentina and...
) was established on May 14, 1968, via the acquisition of the Banco del Este by Pecom, a private holding company owned by the Pérez Companc family. The Pérez Compancs had established themselves in the Argentine business world relatively recently, through the success of the Compania Naviera Pérez Companc, a shipping
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
company established in 1946. Gregorio Pérez Companc
Gregorio Pérez Companc
Gregorio Perez Companc also known as "Don Gregorio" or "Goyo," is Argentina's wealthiest individual, with an estimated net worth of US$1.4 billion dollars in 2011.- Background :He was born Jorge Gregorio Bazán in Buenos Aires, in 1934...
, the adoptive heir to the helm of the family conglomerate, purchased the bank from the Pérez Companc Foundation (led by his sister, Alicia) in 1993.
Pérez Companc, for whom Banco Río de la Plata financed a number of acquisitions during President Carlos Menem
Carlos Menem
Carlos Saúl Menem is an Argentine politician who was President of Argentina from 1989 to 1999. He is currently an Argentine National Senator for La Rioja Province.-Early life:...
's privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
drive (for significant stakes in Telecom Argentina
Telecom Argentina
Telecom Argentina is the major local telephone company for the northern part of Argentina, including the whole of the city of Buenos Aires...
, freight rail carrier Ferroexpreso Pampeano
Ferroexpreso Pampeano
Ferroexpreso Pampeano S.A. is a private company which, in August 1991, was awarded a concession, granted by the Argentine government, for the operation of freight services over a broad gauge rail network comprising sections which, before nationalisation of the railways in 1948, were operated by...
, electric distributor Transener
Transener
Transener is the leading Argentine company in the transmission of extra high voltage electric power.The company owns the national extra high voltage transmission network, comprising almost 8,800 kilometers of transmission lines...
, gas distributor TGS
Transportadora de Gas del Sur
Transportadora de Gas del Sur is the largest natural gas extractor in Argentina. The company was established in 1992, after the privatization of Gas del Estado, the state owned company that maintained the pipelines....
, and numerous others) ultimately sold a controlling stake in the bank (35%, with an option to buy
Call option
A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument from the seller...
for another 15%) to Grupo Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
in May 1997 for US$1.1 billion, upon which it was renamed Banco Río, and listed in the Buenos Aires Stock Exchange
Buenos Aires Stock Exchange
The Buenos Aires Stock Exchange is the organization responsible for the operation of Argentina's primary stock exchange located at Buenos Aires CBD. Founded in 1854, is the successor of the Banco Mercantil, created in 1822 by Bernardino Rivadavia.Citing BCBA's self definition: "It is a...
. Its most important acquisition during the partnership with Santander was that of Banco Tornquist
Ernesto Tornquist
Ernesto Carlos Tornquist is considered to be one of the most important entrepreneurs in Argentina at the end of the 19th century. The diversified business empire he created played a key role in helping to link Argentina with the trading and financial systems of the first world...
, among the most traditional names in Argentine banking. Pérez Companc sold his remaining 18.5% share in February 2001 to Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
, which later sold their stake to Santander.
Santander Río is a majority-owned subsidiary of the Santander Group through its holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, ABLASA, with 79% of its equity, and 99.3% of its outstanding shares. Its services include retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
, debit and credit cards, consumer and commercial loans, mortgages, fixed-term deposits, money transfers, cash management, and other banking operations processing services to businesses and individuals, as well as to small and medium businesses
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
. Santander Río Seguros is the bank's insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
arm, and Santander Río Sociedad de Bolsa, a brokerage house, its sole subsidiary. The bank also has a majority stake in Visa
VISA (credit card)
Visa Inc. is an American multinational financial services corporation headquartered on 595 Market Street, Financial District in San Francisco, California, United States, although much of the company's staff is based in Foster City, California. It facilitates electronic funds transfers throughout...
Argentina, Gire (a wire transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
service), Banelco (ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
), and Interbanking (an offshore banking unit), among others.
The bank, the third largest in Argentina, maintains deposits of around US$4.8 billion (7% of the total), and a lending portfolio of US$3.8 billion (nearly 9% of the total). Banco Río operates 262 branches, nationwide, and employs over 5,000; its network of Banelco ATMs, totaling over 1,500, is the most extensive in the country.
In May 2011, Banco Santander Río filed with the SEC to riase up to $100 million in an initial public offering.