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| Galicia Eyes New Business Opportunities |  | | BNamericas.com | |
January 18, 2001
(BNamericas.com) - Argentine financial holding Grupo Financiero Galicia (NASDAQ: GGAL) is eyeing business opportunities in non-traditional banking areas, investor relations VP Jorge Scarinci told BNamericas.com, without disclosing details.
The Escasany, Ayerza and Braun families created the Galicia holding last year to pursue non-traditional banking businesses such as Internet, insurance, assets management and pension fund administration. The families were prevented from entering into these segments by way of their bank, Banco Galicia, due to Central Bank rules preventing banks from owning more than 12% of non-banking companies.
In December last year Grupo Galicia bought a 37.5% stake in insurance company Sudamericana, whose other shareholders are US-based Hartford Life International Corp. and Bermuda-based Hartford Life Limited (50%) and Banco Galicia (12.5%). Grupo Galicia and Hartford Life Ltda have a good relationship, and Galicia does not plan to increase its stake in Sudamericana Holding, Scarinci said.
ABN AMRO Securities Argentina banking analyst Claudio Maulhardt believes Grupo Galicia will use the same partner strategy if the group decides to invest in non-traditional banking segments this year.
Escasany, Ayerza and Braun own 49.3% of Grupo Galicia, which in turn owns 93.3% of its main asset Banco Galicia, one of Argentina"s three largest private banks in terms of loans and deposits.
Business News Americas (BNamericas.com)
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