Peru Clears Pichincha to Buy Diners Club and Keeps Velarde at Central Bank

Two Peruvian institutions made financial moves in the same week, each addressing different aspects of the country's financial system. Banco Pichincha, the bank, received approval from Peru's market regulator to acquire Diners Club Peru, while Julio Velarde, the central bank president, was confirmed to remain in office until 2031.

The Superintendencia de Banca, Seguros y AFP, Peru's banking, insurance, and pensions regulator, granted the bank permission through Resolution SBS 02290-2026. The bank plans to acquire up to 100% of Diners Club Peru S.A., making it a subsidiary of Banco Pichincha. The total estimated consideration for the transaction amounts to S/23,474,937 or approximately US$6.96 million.

The acquisition did not occur during this reporting period, and the resolution outlines its history. Banco Pichincha and Diners Club Peru have been partners since 2015, forming a consortium for the credit card business. The bank's involvement in the financial sector is permitted under Law 26702, the General Law of the Financial System, which allows banks to acquire shares in firms providing complementary or auxiliary services.

Peru mandates prior authorization from the SBS before establishing a subsidiary. The bank's history dates back to 1964, when it was founded as Financiera y Promotora de la Construccion and later authorized as a bank in 1986. Banco Pichincha has grown significantly, including acquisitions of NBK Bank in 2001 and America Financiera in 2011.

Its current size, with assets valued at around US$2.39 billion, is a result of these strategic moves. In contrast, Julio Velarde has been the central bank president since September 2006, maintaining a consistent interest rate of 4.25% throughout this period.