'While Bancolombia and Banco de Bogota's first acquisitions in
Although the Colombian banks' recent expansion abroad further consolidates their footprint in
'Given the scale and speed at which capital has been deployed over the past few years and the already high goodwill undermining the overall quality of the banks' capital bases, there is little room for additional acquisitions in the near term without it affecting the acquirers' credit profile and ratings,' said
Colombian banks' management teams have a proven track record in acquiring and successfully integrating operations, both in their home country and abroad. While Davivienda has already achieved notable improvements in some of its Central American operations since their acquisition in late 2012, similar trends are expected for Bancolombia's and Banco de Bogota's most recent acquisitions.
However, any additional transactions in the near future could stretch managerial and execution capacity beyond a reasonable level and jeopardize the integration of the most recent acquisitions. Therefore, the current process will require close monitoring and improved management tools to better gauge the different trends and risks overseas.
For more information, the full report titled 'Colombian Banks' Expansion Abroad - Additional Acquisitions more Challenging' is available on the Fitch web site at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
+503 2516 6610
Source: Fitch Ratings
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