Apollo partially exits Evo Banco

The deal does not include the sale of Evo Finance, the group's financial arm in Spain.

According to a statement, the final price will be determined based on the number of customers, transferred balances and any excess capital once the deal is closed.

Following the acquisition, Bankinter hopes to leverage Evo's brand and customer base in order to increase its market share in the digital banking sector. In addition, the acquisition of Avantcard will enhance the group's consumer finance arm and will geographically diversify Bankinter's credit risk by expanding its operations to a new country in Europe.

According to Bankinter, the acquired businesses will have a very limited impact on the group's capital of €99m, or 29 basis points off the fully-load CET1 capital ratio as at the end of June. At that time, the ratio stood at 11.55%; following the deal it will fall to 11.26%, still above the European Central Bank's minimum requirements for Bankinter in 2018.

Apollo wholly acquired Evo Banco from NCG Banco in September 2013 for €60m, which equated to 55% of Evo's net book value, via Apollo European Principal Finance Fund II. Apollo owned the bank via its holding Smart Holdco.

Company
Evo is headquartered in Madrid and was established in 2012 by NCG Banco as a division to operate its assets outside the Galicia region. It has 456,000 digital customers, 229 employees and a balance of around €3bn in deposits and €800m in mortgages. Its Irish credit entity, Avantcard Ireland, which specialises in consumer finance, has 151,000 customers, 145 employees, €280m in revolving card and deferred payment receivables, and €66m in personal loans.

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• Topics
• Exits
• Southern Europe
• Financials
• Apollo Management
• Spain
• Trade sale
• Ireland