Banco BMG is one of the dominant credit institutions in Brazil having performed well over the last fifteen years. The bank also enjoys a rich heritage that dates back to the 1930’s when its pioneers set it up as the Land credit bank. It shows BMG has been around for quite a long time. Any new about BMG is likely to attract the interest of the government, media and even its clients and partners.
The rumor mill has been doing rounds that Banco Bmb is engaging efforts to elicit growth. The management saw it fit to diversify its loan portfolio so that it could attract more clients and thus increase profits. The management had to come out and shed light on such rumors. It turns out they were true. In fact, the firm had been negotiating with three banks at the same time. As it turns out, negotiations with BTG and Bradesco could not yield the desired results. However, Banco Itau got wind of the situation and closed the deal pending the official announcement.
Marcio Alaor, the executive vice-president of Banco BMG, shed light on the developments earlier. He was proud to represent the firm at the briefing and to declare the establishment of a new venture dubbed Banco Itau BMG Payroll. The primary aim of the new venture was to expand the discount lending services on payroll loans. It was revealed that both partnering banks would retain their core business functions.
The joint venture starts with an initial investment of R $300 million which Banco Itau is ready to sponsor within ninety days. Both banks intend to keep injecting resources into the business for the next five years. The new venture seeks to lure employees from the private sector with convenient loan packages.
While speaking about the deal, Marcio revealed that Banco Itau made the call with an offer they could not resist. The only adjustments that Banco BMG has to make are to decrease the payroll budget by 30% and shift the percentage to the new venture. The arrangement will also make it possible to refinance current or almost cleared loans. The two institutions also came to appreciate they possess over eight million clients between them thus have the capacity and the infrastructure to make Itau BMG Payroll a profitable venture. The deal also comes at a time when the Brazilian government is implementing to ensure steady economic growth in the country.
In other news, Marcio Alaor has made headlines by being the first prominent business executive to be born and bred in San Antonio do Monte. He enjoys a good relationship with the people of his town and has taken upon himself to empower local businesses. He was honored during a local festival with the opening of a food joint branded under the names of the town hero.