Unión open to making future acquisitions

Colombia's Banco Unión Colombiano would not rule out the acquisition of another financial institution as a means to enter a "booming" market niche, local daily La República quoted Unión president Juan Fernando Posada as saying. The secret of Unión's recent success is due to its consistent operational focus on the medium-sized corporate market, a niche that generates 80% of the bank's total revenue, Posada said. "Why enter a business that is experiencing a boom when we don't know how to operate there?" he asked rhetorically. As a result, Unión could green light the acquisition of another banking operation to harness that institution's knowledge in alternative market niches. Compatriot bank Banco Aliadas could be an attractive purchase target given that Aliadas is currently reaping the benefits of operating in the auto finance sector, which now represents the fastest growing consumer banking segment. Profits at Colombia's Banco Unión Colombiano hit 6.7bn pesos (US$2.49mn) this year through April, up 115% compared to the same period 2003. The bank's loan portfolio jumped 30% over the same period, Posada added.