Edoardo Toscani: "BBVA leverages on long-standing relationships with Italian clients" March 26, 2013
Edoardo Toscani: "BBVA leverages on long-standing relationships with Italian clients"
Edoardo Toscani, head of BBVA CIB in Italy, analyses the business opportunities in this country, as well as the competitive advantages of the Bank due to its leadership in Spain and its leading position in the emerging markets.
Q: How does 2013 look like for the corporate & investment banking business in Italy?
2013 had a great start in Italy following the return of international investors to capital markets in Southern European Countries. Italy has already started with structural reforms aimed at reducing the Public Debt to GDP ratio over next years. The results of the last political elections has brought some volatility back in the markets, but have also raised the attention in Europe on the need to promote economic growth. Major Italian companies have started a process aimed at optimizing their business portfolio as well as capital structure. These open good business prospects for a bank like ours, which offers a broad range of financial solutions and international operational capacity, especially in high growth potential regions as Latin America or Turkey.
Q: Who are our clients in Italy and what kind of services do we offer them?
BBVA has a very long and established presence in Italy, focused on Corporate and Investment Banking. We are proud of having long lasting relationships with most of the major Italian multinational companies operating in Energy, TLC and Media, Infrastructure and Transportation, Consumer, Utilities, Industrial and Automotive. We also work with Banks, Insurance and other Financial Institutions and International Private Equity funds. BBVA also provides support to Spanish and other European multinationals with subsidiaries in Italy. To all our clients, we offer Corporate and Structured Lending, Debt Capital Markets primary distribution, Transaction Finance and services, Export Financing, risk management solutions, etc. BBVA has a proven expertise in providing Italian Clients with access to loan and debt capital markets as well as transaction banking and risk solutions products in all regions where BBVA is present, with particular reference to Latin and Central Americas.
Q: Does BBVA CIB have any competitive advantages when comparing to our competitors?
BBVA main competitive advantage towards other international competitors in Italy is represented by its leading position in fast growing emerging markets of Central and Latin America, leading position in Spain and access to Turkey, a region where many Italian corporate clients – traditionally devoted to exports - have a meaningful presence. BBVA then has being constantly leveraging on the long-standing relationship with Italian clients and the client service approach on which relationship has been built.
Q: What aspects of BBVA Group are the most valued by Italian clients?
Italian clients have always appreciated the profound client oriented culture of the bank, which contributes to improving our reliability and, therefore, creates new business opportunities.
Q: What business perspectives are there for 2013?
2013 will represent a key year for the world economy. BBVA Research expects gentle acceleration (growth of 3.6% in 2013) marked by three developments: a reduction of financial tensions in the euro zone, progress on reaching a fiscal agreement in the U.S. and improvement in the outlook for some emerging markets. The main headwind towards economic growth in Europe will continue to be represented by the promotion of austerity policies also in northern European countries.
In Italy, however, BBVA remains competitive as Italy and Spain (and Italian and Spanish Companies) are aligned in term of rating, cost of funding / borrowing. During the very challenging 2012 BBVA Italian branch had one of the best results ever, increasing revenues significantly and reducing cash balance sheet utilization. 2013 had a strong start and we are looking at the future with optimism.