How Santander’s Brazil unit is driving growth with car loansReuters #Santander_Brasil

How Santander’s Brazil unit is driving growth with car loansReuters #Santander_Brasil

January 11, 2019 0 By NewsTakers

Santander bank office building is seen in Sao Paulo, Brazil January 9, 2019.
“That’s why many banks don’t like financing old cars.”
Its 90-day default ratio is the lowest among Brazil’s largest private banks, at 2.9 percent in September.
(For a graphic on Santander Brasil’s share of auto loans in Brazil, see tmsnrt.rs/2GtCxFR )
Around 80 percent of the Brazil unit’s auto loans are on cars aged four years or less, and down payments are hefty, averaging 36 percent.
“If Santander’s loan book were problematic, it would already have popped after a 3-year historic recession,” said Angel Santodomingo, chief financial officer for Santander Brasil.
And Brazil risk officers are using company tools that have proven successful elsewhere, including the United States, where Santander is a major subprime auto lender.
Santander has been in Brazil since 1982.
Consumer loans comprise 70 percent of the bank’s loan book, up 12 percentage points from when Rial took the CEO post.
Santander bank office building is seen in Sao Paulo, Brazil January 9, 2019.

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