The market environment in 2011 was the most difficult one since the start of the crisis. Doubts about global economic recovery and lack of confidence in the viability of the euro, among other factors, led investors to take shelter in safe-haven assets, while volatility in equity markets was extreme and activity in the primary markets declined.
Against this backdrop, WB&AM posted results far better than those of the competitors. This is explained by the outstanding presence of WB&AM in emerging economies and its customer-centric approach, as well as by its efficient and low-risk biased management model.
Broken down by business units, in 2011 Corporate and Investment Banking continued with the development and globalization of the online-based transactional products for net-cash companies (mainly, Transactional Trade Finance), adding new functionalities and multi-country capabilities. Also, it has been made efforts related to the increase of deposits in practically all customer segments, with the objective of enhancing profitability and reducing leverage. Finally, cross-border activity with subsidiaries from Europe and Latin America was also strengthened. In Global Markets, efforts were focused on the globalization and development of innovative products for fixed-income and equity with the aim of increasing customer´s added value. Asset Management apart from making efforts in globalization and improvements in the platform, has developed a service model closely linked to the internal distribution networks while evolving the product mix to offer high added value solutions.
Facing a future in which the increase of regulatory pressures, the global slowdown and the weaknesses of the euro zone, will continue to be a challenge for the wholesale business, WB&AM will remain firmly behind:
- Strengthening the area’s positioning in core markets: in Latin America, for instance.
- Using those markets as a mechanism for entering other new markets.
- Exporting the current business model to non-core geographical areas through an international niche banking strategy.
Thus, the action plans for the coming months will be focused on strengthening the following factors:
- Upgrading of the product platform and distribution in the Global Markets business.
- Creation of a regional platform for transactional services in Latin America.
- Use of the existing competitive advantages in the core markets to increase business with institutional customers.
- Implementation of the Group’s wholesale product distribution model in the United States through BBVA Compass commercial network.