Banco Cuscatlán begins operations in Honduras after purchasing shares in Banco de los Trabajadores. /courtesy
Banco Cuscatlan announced on Monday that it will acquire a stake in Banco de los Trabajadores and begin operations in Honduras, a milestone that marks the first step towards regionalization.
The agency said in a statement that Invergenes Cuscatlan Centroamerica, a subsidiary of Honduras Grupo Terra, has received the corresponding regulatory approval to acquire a majority stake in Honduras’ Banco de los Trabajadores. It was stated in detail that it had been obtained.
Although entering the Honduran market will involve a change in image, it will also bring with it the “good practices and experience” that have characterized its operations in El Salvador. In El Salvador, it is the second largest bank with a share of 18% and 17.8% in the total loan portfolio. % of deposit.
“This measure will bring outstanding financial solutions with innovation through more human banking, focused on providing the best service experience to customers, and serving people in Central America in a responsible and sustainable manner. It affirms our regional vision of creating value,” said Federico Nacer. Chairman of Invertes Cuscatlan.
Banco Cuscatlán plans to begin serving Honduran customers in 32 branches distributed throughout the territory of Honduras, where they will also have access to an extensive network of Banet ATMs, self-banking, correspondent agent services and access to digital banking. We are prepared.
The financial institution announced that it will focus on accelerating its growth plans in physical and digital service points over the next six months. For this reason, the company plans to open his 10 agencies across the country, reaching 42 agencies. Additionally, they would like to integrate a network of 80 ATMs.
The current products and services in Banco de los Trabajadores’ portfolio will be managed by Banco Cuscatlán, maintaining their current conditions. Ferdinand Voto, Chairman of the Board of Directors of Banco Cuscatlan, asserted that the entry into the Honduran market marks “an important step for the banking system.”
Birth and integration.
Cuscatlan Bank’s operations date back to 1972. In 2007, America’s Citigroup acquired Cuscatlan International Bank (UBCI), the owner of Cuscatlan Bank, which led to the demise of the Plaza brand.
In 2006, Citi changed its business strategy in Latin America and decided to sell the business to Imperia Intercontinental, and the Banco Cuscatlan brand was relaunched. Imperia Intercontinental will remain the main shareholder of Banco Cuscatlán y de Segros e Inversiones (SISA).
In order to consolidate its operations in the El Salvadoran market, in 2019 it announced an agreement to purchase the shares of Canadian bank Scotiabank, which had been operating in the country since 2004. This process will be completed in 2020. All facilities have changed and become the second most important in El Salvador.
As of June 30, 2023, Banco Cuscatlán’s asset portfolio was $3,979.8 million. The total loan portfolio amounted to $2,426.7 million and the deposit balance amounted to $2,998.9 million.