Javier Balbín: "2014 is shaping up as a year of strong growth for corporate and investment banking" February 17, 2014
Javier Balbín: "2014 is shaping up as a year of strong growth for corporate and investment banking"
Javier Balbín, head of Corporate & Investment Banking in Peru, shares with us his views on the wholesale banking business in the country and the business outlooks for 2014.
Q: How does 2014 look for corporate and investment banking in Peru?
We have a very upbeat outlook, and we believe that 2014 will be a spectacular year for Peru, including for Corporate & Investment Banking. Our challenge will be to take advantage of the country's growth to generate business at CIB Peru. To meet this challenge, we will be very aggressive in the value proposition we make to our clients.
Q: What characterizes BBVA's presence in the country?
BBVA Continental is the second-leading bank in the country in terms of market share and earnings. We play a leadership role in Peru, and in recent years the Bank has grown significantly in terms of its physical presence, and it has bolstered its workforce, working in a straightforward manner and giving the utmost service quality to our clients.
Q: Who are our clients in Peru, and what type of services do we offer them?
We might say that our corporate clients are divided into three groups:
- Headquarters of local companies that have a strong national presence and are beginning to look for opportunities not only within Peru but beyond. We have supported these clients' local growth plans, as they seek to seize the opportunities created for them by growth. And we are now supporting their regional growth, by leveraging our strong presence in South America, and they value this highly.
- Regional affiliates of very important clients in South America that have established a foothold in Peru and are contributing their experience in key sectors. We offer them our regional management, in coordination with their home countries, in order to support their growth and investments.
- Affiliates from the rest of the world that have set up operations in Peru and value a global relationship. These clients need a bank that is responsive to their needs and takes into account their presence in every country where they are located, and BBVA is ready to give them an answer.
Q: Does BBVA CIB have any competitive advantages that work to its benefit vis-à-vis its competitors?
We have several advantages vis-à-vis our competitors, namely our strong regional and global presence, which none of our competitors in Peru has, allowing us to give more complete service to our clients and to support their growth within and outside of our borders. I would also add the quality and international stature of our team, which is prepared to advise our clients and offer them solutions in sophisticated transactions requiring complex and/or customized structures, which is a key for ensuring the success of these transactions.
Q: What aspects of the BBVA Group are most valued by our Peruvian clients?
Undoubtedly, our Peruvian clients are seeking significant growth during this important time for the country's economy. Consequently, they value three aspects of BBVA, above all: our global presence, allowing them to seize opportunities outside of the country in terms of relationships and to seek options through different products (for example, our international-issuance capacity). Secondly, our structuring capacity, with a team of professional experts, allowing them to find financing alternatives for each project that arises.Finally, the teamwork and responsiveness, given that clients value having an experienced financial partner to give them accurate advice, when they need it, for the concessions in which they take part.
Q: What are the business outlooks for 2014?
As I said at the beginning, this will be an excellent year for Peru. If in 2013 the country's GDP grew by approximately 5%, our growth projection for this year is even higher. This will be made possible by the growth of some key sectors in the economy. In the infrastructure sector, 2014 should be a very important year for this sector, given that concessions are going to be awarded for many large-scale projects, giving a strong boost to the country's economy. I am referring to the Rutas de Lima highway (which is under way) and the Longitudinal de la Sierra highway, the Chincheros airport in Cusco and the star project, Line 2 of the Lima subway. In the energy sector, the start of construction on the energy complex in southern Peru, on which the bid was held last year and which involves two dual diesel and gas reserves, and the Iquitos-Moyobamba transmission line. In mining, the launch of operations at the Toromocho copper project, which is now ready, and the Las Bambas and Constancia projects, the expansion of Cerro Verde, among others will be the most relevant projects. Therefore, 2014 is shaping up as a year of strong growth for corporate and investment banking, and we at CIB Peru want to be leading players in that growth.