 Global) BBVA aims to grow investment banking services. In addition to the future bid for the takeover of Banco Sabadell, one of the goals of which is to increase the weight of the Spanish market in the bank’s balance sheet and balance it with the Mexican and Turkish markets, the wholesale banking segment is another axiom for the growth of the entity for the future. In particular, it is focused on increasing its presence in various markets.
BBVA is implementing a renewed strategy in the field of investment banking in various regions.
- Latin America:
- BBVA presented its Latin American growth plan to an important group of institutional investors and corporate clients in New York. The organization plans to expand its team and offer wholesale banking products in Brazil and Chile.
- In addition, BBVA aims to increase activity in structured transactions (REPOs) in the region, which will increase the number of services it offers to its large clients worldwide.
- BBVA’s presence in Latin America is relevant and the organization is in a unique position to help companies take advantage of international trade corridors, especially in Asia and Europe.
- Latin American economies have demonstrated resilience and adaptability over the years and are expected to strategically leverage their geographic location and trade relationships.
- USA:
- Following the sale of BBVA USA to PNC, BBVA is entering a new phase in the United States.
- Although BBVA has been operating for more than 45 years through its New York branch, it is working on a long-term growth plan focused on wholesale banking.
On the other hand, he has shown a strong commitment to Asia, a region that has seen significant economic growth in recent decades. According to BBVA Research, between 2011 and 2021, Asia will account for 60% of global economic growth and every two billion dollars of investment. Furthermore, this contribution is expected to grow to 65% between 2017 and 2027.
Although BBVA is active in several Asian countries, some of the places where it focuses its efforts include:
- China: Given the economic importance of China, BBVA is strengthening its presence in this country. Although it is not easy for foreign banks to operate in China, BBVA cooperates with local partners and participates in key financial projects.
- Turkey: Although Turkey is not an Asian country in the geographical sense, part of its territory is in Asia. BBVA has a significant presence in Turkey through its subsidiary Garanti BBVA, which operates on both the European and Asian sides of Istanbul.
In addition to the above, it is focused on strengthening its presence in the United Kingdom for several strategic reasons:
- The market of investment banking services: The market for investment banking in the UK is significant and is expected to continue to grow. Revenue is expected to be achieved 7.88 billion US dollars in 2024 with a compound annual growth rate (CAGR) -1.06% until 2028.
- Profitable growth: BBVA showed good financial results. Between January and September 2023, he received a proper net income of Rs 5,961 million eurosincrease in Art 24.3% compared to the same period last year.
- Focus on digital transformation: BBVA is committed to digital transformation and sustainable development. By strengthening its presence in the United Kingdom, it aims to take advantage of growth opportunities and offer its customers more digital and sustainable solutions.