Spanish Giant BBVA Returns to Brazil, Focusing on Corporate Clients

Spanish banking giant BBVA is making a strategic comeback in Brazil’s financial sector. Two decades after selling its retail operations to Bradesco, BBVA is now focusing on the lucrative wholesale banking market.

Maria Agustina Ramírez, BBVA Brazil’s president since January 2023, has set ambitious goals. The bank aims to serve 360 key clients by 2027, up from its current 50.

This includes 100 major Brazilian companies, 200 foreign firms with significant Brazilian operations, and 60 institutional players.

BBVA’s renewed interest in Brazil aligns with its global strategy to strengthen its wholesale banking presence. Brazil represents about half of Latin America’s wholesale banking revenues, making it a prime target for expansion.

To support this growth, BBVA will inject fresh capital into its Brazilian subsidiary and plans to apply for a commercial banking license in early 2025. This will enable the bank to offer a wider range of services, including cash management and deposit-taking.

The bank is actively recruiting talent, bringing in experienced professionals from competitors like Itaú, Credit Suisse, HSBC, and BNP Paribas. These hires will bolster BBVA’s expanding team and bring valuable industry expertise.

BBVA’s Expanding Presence in Brazil

BBVA’s product offerings will include treasury services, trade finance, foreign exchange, structured operations, asset management, and payment solutions.

The bank has already participated in notable bond issuances for companies like Nexa, LD Celulose, and Eletrobras. Sustainability is a key focus of BBVA’s Brazilian strategy.

The bank aims to support clients in their transition to more sustainable practices, recognizing Brazil’s significant role in global carbon capture opportunities.

While BBVA maintains strong operations in other Latin American countries, its Brazilian strategy will focus on serving companies with business corridors to Europe, the United States, and Asia.

In a separate move, BBVA invested R$1.6 billion ($285.7 million) for a 29.7% stake in the digital bank Neon in 2022. However, this investment is managed independently from the wholesale banking strategy.

As BBVA embarks on this new chapter in Brazil, it aims to compete with other European banks in the wholesale sector, potentially reshaping the competitive landscape of corporate banking in Latin America’s largest economy.