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February 27, 2008 |
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BANCO DO BRASIL: Mulls Increasing Retail Operations in LatAm Banco do Brasil's International Business Director Sandro Kohler Marcondes told Business News Americas that the bank is considering increasing its retail operations in Latin America and Europe. Mr. Marcondes commented to BNamericas, "In effect, we're already in Portugal." BNamericas notes that Banco do Brasil has 30,000 customers in Portugal and 150,000 clients in Japan. Portugal and Japan have sizable Brazilian immigrant communities. According to BNamericas, Banco do Brasil expects to open a commercial bank and a money transfer company in the U.S. in the second half of 2008. Banco do Brasil wants to have up to 400,000 customers in the U.S. in five years, concentrating on the east coast, where most of the approximately 1.5 million Brazilian expats live, BNamericas says, citing Mr. Marcondes. Mr. Marcondes commented to BNamericas, "It'll be a relatively small operation. The US$44 million in starting capital will be enough to support our business plan over the next five years." Mr. Marcondes told BNamericas that Banco do Brasil could also consider acquisitions in the U.S. The bank will rely on organic growth for the first five years, offering primarily to Brazilians immigrants: -- money transfers, -- credit cards, and -- checking and savings accounts. Banco do Brasil will expand its product line in the U.S. to include personal loans. The bank could eventually offer private pension plans and other savings instruments if there is enough demand, BNamericas notes, citing Mr. Marcondes. "We studied the market and found the Brazilian community in the U.S. had potential. Some banks in the U.S. have a strategy for Latinos but not necessarily for Brazilians with service in Portuguese," Mr. Marcondes commented to BNamericas. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and more than 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. * * * On Nov. 6, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a Ba2 long-term bank deposit rating on the bank with a stable outlook. In May 2007, Standard & Poor's Ratings Services raised its long- term foreign currency counterparty credit rating on Brazilian government-related entity Banco do Brasil to 'BB+' from 'BB', after Brazil's foreign currency sovereign credit rating was upgraded to BB+. |
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