Banco Finantia restructures its position in Spain by merging with its Portuguese parent

In 2019, the year before the pandemic, it already reduced its net profit by 31% and hung the ‘for sale’ sign to its Spanish business.

Banco Finantia office in Madrid.

The luso Banco Finantia restructures its position in Spain. Your local bank, Banco Finantia Spain, is immersed in a merger process by cross-border absorption with its parent company in Portugal, Banco Finantia SA, “similar to other operations in the banking sector.”

The purpose of the planned operation is “Rationalize and simplify the corporate, organizational and operating structure of the Banco Finantia Group, which results in the improvement and quality of the services provided to customers ”, explained a spokesman for the Portuguese bank in our country when asked by Invertia.

The operation is subject to the respective approvals of the supervisory bodies, the Ministry of Economic Affairs and Digital Transformation of Spain and the Bank of Portugal, as well as the approval of the merger by the general shareholders’ meetings. The operation is expected to be concluded in the last quarter of this year.

The Finantia group absorbed in 2001 the Sphinx Bank in Spain and, in 2002, it merged it with Inverbolsa AV, the year in which it began its local operations as Banco Finantia Sofinloc. Its activity focuses on three areas: personal banking, investment banking and specialized financing.

Its executive president in Spain is Marta Eirea, who had previously been the CEO and CEO of Banco Esfinge.

Deposits, your big claim

The Finantia brand is known among those savers who are looking for slightly extratyped deposits despite the ultra-low interest rates that currently prevail, between 0% and -0.5% in the case of the Eurozone. Your term deposits are paying between a 0.60% APR at 12 months and a 0.90% APR at 60 months.

The 36-month reference, one of the most used, is remunerated at 0.80% APR from 50,000 to 500,000 euros.

Headquarters of Banco Finantia Spain in Madrid.

Headquarters of Banco Finantia Spain in Madrid.
Europa Press.

“Banco Finantia has financial soundness ratios above the European average. In the last three years, it has always been among the 20 European banks with the highest levels of financial soundness, with a common equity tier 1 (CET1) as of December 2020 of 27.2%, one of the highest in European banking. And a net profit for the year 2020 of 23.7 million euros ”, they specify from the entity.

However, between the end of 2019 and the beginning of 2020 the group hung the ‘for sale’ sign to its Spanish business, where it has offices in Madrid, Barcelona and Valencia. He even drew up a preliminary sales document that was circulating among potential buyers. The bank has not responded to this question.

Following in the footsteps of Novo Banco?

According to its 2019 annual accounts, the latest published, obtained a net profit of 6.8 million in the year before the pandemic, 31% less than in 2018. Although the 2020 accounts are not yet public, it is not surprising that they have worsened even more due to the health and economic crisis of Covid-19. The aforementioned corporate rationalization and the sale process that began to move informally are related to these figures.

At the end of 2019, Banco Finantia Spain handled a business volume of 18.6 million euros and employed 75 people. At a global level, the group also has a presence, in addition to Lisbon and Porto, in London, New York and São Paulo.

Doubts about the presence of Banco Finantia in Spain arise after the goodbye of another Portuguese compatriot, Novo Banco. This entity sold its asset manager to Trea Asset Management at the end of last year, with 600 million euros, and two weeks ago it was reported that Abanca was taking over the rest of the banking network in our country, with a volume close to 4,300 millions.