Skip to main content

Santander Chile Falls on Lending Slowdown Concern (Update1)

By Nathan Gill and James Attwood
     Jan. 14 (Bloomberg) -- Banco Santander Chile, the country’s biggest lender, fell the most in a month in Santiago trading on concern that a deepening global economic slowdown is stifling lending.
     Santander Chile fell 3 percent to 22.1 pesos, the steepest drop since Dec. 15. Banco de Chile, the second-largest lender, slid the most since October.
     U.S. stocks slid to a six-week low after a government report showed retail sales decreased at more than twice the rate forecast by economists last month. Banks led declines in Europe after Deutsche Bank AG reported a fourth-quarter loss and investors speculated financial firms may need to raise more capital. Chile’s central bank today said the consumer lending boom is over as banks scale back credit on concern that slowing economic growth will hamper borrowers’ ability to repay.
     “In a scenario in which all the banks are dropping, Santander should fall more than the rest because it is a lot more expensive,” Javier Pizarro, an analyst at Larrain Vial SA, said by phone from Santiago today.
     Santander fetches 13 times earnings. Smaller rivals Corpbanca SA and Banco de Credito e Inversiones have multiples of 11 and 8.1, respectively, according to Bloomberg data.
     Consumer loans by Chilean banks fell 1.6 percent in real terms in the 12 months through October, the first decline in more than five years, the central bank said in a report published today.
     Banco de Chile lost 6.8 percent to 34 pesos, the lowest price this year.

Comments

Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.

Bailout Risk Grows for Ecuador After Worst Earthquake in Decades

By Nathan Gill April 19, 2016 (Bloomberg) -- Before a 7.8-magnitude earthquake struck Ecuador on Saturday, the South American nation’s finances were already in tatters as the government struggled to meet payments to municipal authorities, oil companies and even cancer hospitals. Cut off from global bond markets, President Rafael Correa must now find enough money to rehouse thousands.
As volunteers continue to rescue victims from the rubble of collapsed homes and buildings on Ecuador’s Pacific coast, doubts are growing about the country’s ability to pay for the reconstruction. The nation is already in its worst recession since the financial system collapsed in the late 1990s, and international reserves are at their lowest levels in almost seven years.
Click hereto read the full story on Bloomberg News.