Banco Santander Puerto Rico to Discontinue Auto Financing
14 June 2000
Banco Santander Puerto Rico to Discontinue Auto FinancingSAN JUAN - Santander BanCorp, the holding company of Banco Santander Puerto Rico, announced its decision to withdraw from the auto financing business effective June 30, 2000 as part of its strategy to develop business in other sectors. Juan Arenado, Banco Santander Puerto Rico's President and Chief Executive Officer, said "We want to continue to create value for our stockholders and clients by dedicating our attention to those areas that offer greater profitability and lower risk." Banco Santander Puerto Rico's automobile loan portfolio totals approximately $207 million and it will be maintained until all of the loans have been liquidated. Although the institution will not remain active in this line of business in the market in general, it will continue to offer this kind of financial service to its existing clients. Arenado noted that the "Delinquency rate of 6% in this portfolio is one of the lowest in the market for its category". He again stressed the importance of having the bank concentrate its efforts in other areas of business more attuned to banking reform and the changes taking place in the industry. Banco Santander Puerto Rico's shares are traded in the New York Stock Exchange and Latibex, the new stock market for the trading of Latin American shares in euros in the Madrid Stock Exchange. Banco Santander Puerto Rico, a subsidiary of Santander BanCorp, has been operating in Puerto Rico for 24 years and is the second largest banking institution on the island. It offers a full array of services in the areas of commercial, mortgage and consumer banking, supported by a team of over 1,700 employees. The Bank has 77 branches in Puerto Rico, 15 of which are fully automated branches that operate under the name "Red Express." Banco Santander Central Hispano, S.A. (Spanish stock exchange: SCH; NYSE: STD), the leading financial group in Spain and Latin America and one of the largest banks by market capitalization in the Euro Zone, owns 80.5% of the outstanding shares of Santander BanCorp. According to its balance sheet as of March 31, 2000, Banco Santander Central Hispano, S.A. had US$339 billion in total managed funds and US$258 billion in assets, with 24 million clients and operations in 37 countries, including all of the world's major financial centers. Banco Santander Central Hispano offers a wide range of commercial and consumer banking services in Europe and Latin America through its over 8,300 offices and more than 94,000 employees. The Bank is first in total assets in the region and is among the leaders in managing funds in Europe and Latin America, with more than $13 billion in mutual and pension funds under management.