Santander
BanCorp
Press Release
Contacts:
(Banco Santander Puerto Rico)
Iris Rivera (787) 250-3043
(American Express)
Dorothy Y. Zhang (212) 640-4308
Rosana Roig (787) 268-1134
BANCO SANTANDER PUERTO RICO ISSUES
AMERICAN EXPRESS – BRANDED CREDIT CARDS
New Cards Offer Lowest Introductory Interest Rate in Puerto Rican Market
San Juan, Puerto Rico, October 24, 2000 – Santander Bancorp (NYSE: SBP;
LATIBEX: SXBP) through its wholly owned subsidiary, Banco Santander Puerto Rico
(“Banco Santander”), and American Express jointly announce the launch of exciting new
card products in Puerto Rico. Banco Santander will today begin issuing the Banco
Santander American Express Credit Card and the Banco Santander American
Express Gold Credit Card, which will be accepted on the American Express global
merchant network.
Today’s launch also marks a significant expansion of the existing relationship between
American Express and Santander Central Hispano Group (“BSCH”), the largest financial
group in Latin America and Spain. In addition to the alliance launched today, American
Express has established similar card-issuing arrangements with Banco Río de la Plata in
Argentina, Banco Santiago in Chile and Banco Santander in Spain, all of which are
prestigious members of the Santander Central Hispano Group.
“We, at Banco Santander Puerto Rico, are delighted to be issuing credit cards on the
American Express global network,” said Juan Arenado, President and Chief Executive
Officer of Banco Santander Puerto Rico. “The addition of American Express-branded
Cards significantly enhances the breadth and sophistication of our product portfolio and
enables us to tap new segments of the Puerto Rican market. Our customers will benefit
from the recognized quality and service associated with Banco Santander and American
Express.”
“American Express Cards have been available in Puerto Rico since 1958, the same year
in which American Express introduced its very first card product,” said Gonzalo G. Ruiz,
Jr., Vice President and General Manager, American Express Global Network Services,
Latin America and the Caribbean. “The launch of the Banco Santander American Express
Credit Cards represents yet another step in our growth in this important market. Through
an alliance with Banco Santander, we will provide Puerto Rican consumers with greater
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opportunity to experience the global prestige and convenience that is the signature of the
American Express brand.”
The Banco Santander American Express Credit Cards carry a wide variety of distinctly
value-added benefits. Most notably, the Cards offer a low introductory interest rate of
8.95% APR for balances during the first six months, making it the most competitive
preferential rate in the Puerto Rican card market. In addition, Cardmembers will enjoy
core American Express Card features such as 24 hour-a-day, 7 day-a-week customer
service, acceptance at American Express-affiliated merchant locations in more than 200
countries and territories, and travel assistance at more than 1,700 American Express
Travel Service Offices in 130 countries.
Puerto Rico boasts one of the most dynamic and sophisticated credit card markets in the
Caribbean region, thanks largely to its strong economy, a high level of card acceptance
with merchants and the frequent usage of credit among Puerto Rican consumers. In 1999,
the credit and charge card billings on the island reached $2.4 billion, representing almost
one tenth of total consumer spending.
The Banco Santander American Express Credit Cards bring outstanding new choices to
Puerto Rican consumers, many of whom are accustomed to carrying multiple cards of
different brands. Currently, more than 90% of credit cards in force in Puerto Rico are
active, a percentage considerably higher than in most countries in the region.
Also unique to the Puerto Rican market, some 20% of local credit card transactions are
cash advances. The Banco Santander American Express Credit Cards effectively serve
this trend by enabling Cardmembers to obtain cash at more than 300,000 ATMs on the
American Express’ global network.
The new Cards, which carry the American Express Blue Box logo at the bottom right
corner, are designed, issued and serviced by Banco Santander Puerto Rico. Additional
features of the Cards include:
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No annual fee for the first year (Cardmembers pay $35 for the Banco Santander
American Express Credit Card and $55 for the Banco Santander American Express
Gold Credit Card annually after the first year);
Free supplemental Cards for the first year, with flexible credit lines that can be set
and adjusted by the principal Cardmember;
Emergency Card Replacement within 24 hours;
American Express Travel Accident Insurance for up to $200,000 for the Banco
Santander American Express Credit Card and $500,000 for the Banco Santander
American Express Gold Credit Card;
American Express Emergency Assistance, providing traveling Cardmembers with
emergency referral service to local medical and legal providers;
American Express Retail Protection, which protects merchandise against accidental
damage or theft for up to 90 days after the purchase;
American Express Car Rental Damage and Loss Insurance;
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American Express Luggage Insurance; and
Annual billing statement for Banco Santander American Express Gold Cardmembers.
American Express is aggressively pursuing a strategy of opening its merchant network
and card product portfolio to other card issuers around the world, as a major growth
initiative for the company. By leveraging its global infrastructure and the powerful appeal
of the American Express brand, the company aims to become the premier global network
and gain wider reach to customers worldwide. In the last several years it has developed
66 card-issuing relationships in more than 70 countries. In Latin America alone,
American Express has established 20 such alliances in 15 markets, allowing the company
successfully to build its business in the region.
American Express Company, founded in 1850, is a diversified global financial, network
and travel services provider. It is a leader in charge and credit cards, Travelers Cheques,
financial planning, travel, investment products, insurance and international banking.
Banco Santander Puerto Rico is a wholly owned subsidiary of Santander BanCorp, a
publicly held financial holding company that is traded on the New York Stock Exchange
and Latibex, the Madrid Stock Exchange. Banco Santander has been operating in Puerto
Rico for 24 years. It offers a full array of services in the areas of commercial, mortgage
and consumer banking supported by a team of over 1,500 employees. The Bank has 75
branches, 15 of which are fully automated branches that operate under the name of "Red
Express".
Banco Santander Central Hispano, S.A. (Spanish stock exchange: SCH; NYSE: STD),
the leading financial group in Spain and Latin America and one of the largest banks by
market capitalization in the Euro Zone, owns 82% of the outstanding shares of Santander
BanCorp. According to its balance sheet as of June 30, 2000, BSCH had US$384 billion
in total managed funds and US$303 billion in assets, with 24 million customers and
operations in 37 countries, including all of the world’s major financial centers. BSCH
offers a wide range of commercial and consumer banking services in Europe and Latin
America through its 9,900 offices and more than 111,000 employees. It is the largest
financial group in total assets in the region and is among the leaders in managing funds in
Europe and Latin America, with more than $74 billion in mutual and pension funds under
management.
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