27 June 2024

BBVA showcases its capabilities in Latin America to key investors in New York

BBVA has presented its growth plan in Latin America to a large group of institutional investors and corporate clients in New York, at a meeting it organizes every year. The Bank plans to expand its teams and offer wholesale banking products in Brazil and Chile, and boost the Structured Finance Transaction (repos) activity in the region, thus increasing the service that the Bank offers to its large clients globally.

"BBVA has a very relevant presence in Latin America and, as a result, it is in a unique position to help companies leverage the international trade corridors, specifically to Asia and Europe, thanks to its expert teams, its commercial reach and its ambition to continue to be the best partner to drive the cross-border business of client," said Javier Rodríguez Soler, global head of Sustainability and Corporate & Investment Banking (CIB) at BBVA, at the opening session of the 13th BBVA Latin America Conference, held this week in New York.

The economy of Latin America has demonstrated its resilience and adaptability over the years, with markets rapidly evolving to meet the challenges of a changing economic, financial, social, and political landscape. "Not only do we find a positive structural factor for the region's economies, i.e. the absence of financial or credit bubbles, but it also seems to be well prepared to deal with potential geopolitical changes or changes in global supply chains," Rodríguez Soler said in his presentation to investors. 

BBVA is present in the region through its universal banking franchises in Mexico, Colombia, Peru, Argentina, Uruguay and Venezuela.

The BBVA Latin America Conference has become a leading event for the financial community. This year, it hosted 400 attendees, including more than 200 institutional investors and almost 100 corporate clients from more than 50 companies and seven countries in the region. These included Alejandro Werner, director of the Georgetown Americas Institute and former director of the International Monetary Fund; María del Carmen Bonilla, Undersecretary of Finance and Public Credit of Mexico; Julio Velarde, governor of the Central Bank of Peru; and Alberto Naudon, director of the Central Bank of Chile, who addressed the challenges presented by these economies in their speeches.

During the meeting, the different experts underlined the expectations that Latin America can capitalize on its geographical location, output and trade relations in a strategic way, especially in Mexico as a possible beneficiary of economic rebalancing and in relations with the United States, in addition to the support derived from the 'nearshoring'.

Most Latin American countries have pursued prudent policies, especially as refers their monetary policies; central banks have initiated easing processes (from very high levels) and are willing to tolerate the effects of depreciation on their currencies. Some speakers also highlighted the possible role of industries with great potential such as renewables or the supply of metals. In particular, they were optimistic on matters such as copper and a possible expansion of demand and investment in the coming quarters. As for Argentina, they highlighted the country's better-than-expected political and macroeconomic prospects, although they expressed some consensus on the need to anchor a broad political agreement and move toward more consistent policies.

In this context, BBVA is prepared to continue supporting the shaping of the financial future of Latin America, on the strength of its commitment to the economic growth of the countries where it operates and the satisfaction of the needs of the bank's clients in the region. Additionally, BBVA plans to expand its teams in Brazil and Chile and boost the Structured Finance Transaction (repos) business in the region.


Leadership in product and platform development

BBVA's leadership in sustainability has led the Bank to be a pioneer in supporting clients in their energy transition. BBVA's strong presence in the ESG debt markets business has allowed the Bank to continue to be the leader in green, social and sustainable bonds in Mexico, according to Bloomberg; this was possible thanks to the highest standards of service and execution for clients under various market conditions. It also assists its clients in the development of new decarbonization technologies, which are critical to meeting their energy transition objectives. All in accordance with its own decarbonization targets that have been established for different sectors by 2030.

The continuous commitment to develop products and platforms in the region is also important. In terms of digital transformation, Latin America has witnessed rapid digitalization, particularly in the financial sector and payments. This has boosted financial inclusion, promoted competition, and increased economic growth and productivity. BBVA has developed global connectivity capabilities that it is working to optimize and improve even more. The global FX offering and the digital platform for investment solutions are clear examples of these efforts.

In addition to all this, the relevance of BBVA's franchises in the region as well as its presence in the United States, a key developed market that complements the Bank's presence in emerging markets, is an essential component in its relationship with international investors and corporate clients.

Finally, the Bank is expanding its product offering on a global scale to meet the needs of institutional clients, incorporating local and global specialized bankers, to be the go-to bank for institutions in its main geographies and in international markets for basic products.

BBVA's wholesale banking area has achieved double-digit franchise growth in Latin America in the last year. The foreign exchange business is particularly noteworthy, and it has been recognized by Global Finance as the Best Foreign Exchange Bank for the third consecutive year.