The Council of the National Markets and Competition Commission (CNMC) has agreed to the preliminary authorization of the purchase of Targobank Spain by Abanca, after having examined the operation for just over three months. The supervisor's decision, which was made last week, comes after Abanca signed the acquisition with Banque Fédérative du Crédit Mutuel (BFCM) last February.
The Galician bank then announced that it planned the technological integration of the company in 2024, once it had the corresponding authorizations. With the incorporation of Targobank Spain, Abanca would manage a business volume of 112,544 million, 5.2% higher than the current level. Loans amount to 49,219 million, 6.9% more; Deposits total 51,390 million, with an increase of 4.4%, and the number of branches grows by 7.5%, to 727. The overall default ratio is 2.1% and coverage is 86%.
After the acquisition was made public, Abanca assured that the integration will allow Targobank Spain clients to benefit from greater technological capabilities, especially through its mobile banking, as well as personal attention in a network of nearly 700 offices in Spain, and the international presence of the entity in 11 countries in Europe and America.
Targobank Spain had 541 professionals last February, which Abanca said it will maintain, and who provide service to nearly 150,000 clients through the 51 offices they have throughout the national territory, especially in Madrid and Andalusia.
This is the seventh corporate operation that Abanca has carried out since 2014. The first was the integration in 2014 of Banco Etcheverría; In 2017, the integration of Popular Servicios Financieros was completed; in 2019, the integration of Deutsche Bank PSCB Portugal, and in 2020 that of Banco Caixa Geral. In 2021 the purchase of Bankoa was completed and in 2022 that of Novo Banco.
The Galician entity recorded a net profit of 277.5 million in the first half of the year, which is 164.8% more than in the same period of the previous year. Customer deposits grew by more than 1.9 billion in the second quarter alone and credit granting has increased by 7.9% year-on-year, with a focus on companies and families.
