Published: January 01, 2011
The corporate sector is overall in good shape, with most companies of all sizes managing their way through the crisis successfully, both from a cash flow and balance sheet perspective. Not only are we seeing a gradual, but certain recovery across Europe, but a significant number of corporates are also active outside Europe, benefiting from growth in fast-growing regions such as Asia and Latin America. Consequently, despite the market challenges, I am cautiously optimistic about prospects for European corporates.
I have no doubt that the Eurozone will emerge from the current period of challenge and change with the euro still intact. The countries that are facing the greatest challenges are dealing with the crisis in a way that seems very proactive, combining their own efforts, namely structural, fiscal and budgetary reforms, with financial assistance from the Eurozone.
It is clear that the new capital and liquidity requirements will create a demanding environment for banks, which in turn will affect their corporate clients, particularly in terms of the volume of lending and its price. Now, however, the emphasis should move from developing new regulations to its implementation in the 20 major economies across the world, in order to create a consistent and robust regulatory framework.
In addition, there needs to be greater focus on improving the quality of individual supervisory authorities, as supervisory failures were a significant factor in many of the problems we have encountered in recent years.
I have no doubt that the Eurozone will emerge from the current period of challenge and change with the euro still intact.
Our strategy does not rely on acquisitions over the next few years, and we have no plans to replicate the scale of acquisition that we made with Fortis. Our priority is to continue with the integration project which is already proving so successful, and which is currently ahead of schedule. BNP Paribas has a formidable presence both within Europe and beyond, and between 2011 and 2013, we still have a lot to do to strengthen our market position, with a view to reaching new levels of customer acquisition and customer satisfaction across our corporate banking and cash management services.[[[PAGE]]]
One of the major advantages that the Fortis acquisition has brought us is the business centre network. We now have 150 business centres in 23 European countries, combining specialist expertise with strong product offerings across our cash, trade and other corporate banking services.This network of business centres is an essential element in our offering to corporates, and places us in a very strong position to develop our market share and provide truly pan-European services to our corporate clients, whether they are headquartered in Europe or elsewhere.
Our portfolio of specialised financing services has also been enhanced considerably, such as in commodities and shipping, so we can partner our clients effectively across their geographic and product spectrum.
Our enhanced presence that has resulted from our acquisition of Fortis is clearly important for our corporate clients who benefit from both depth and breadth of cash management expertise in addition to access to a full range of domestic and international cash management solutions, including industry-leading electronic banking and cross-border cash pooling solutions. Not only is the range and geographic reach of solutions important, but it is important for a bank to promote innovation to create new ways to benefit its clients. Our cash management team continues to pioneer a number of significant industry initiatives including our SWIFTNet offer for corporates (for which we have recently been awarded Best Bank in Europe by TMI), our eBAM (Electronic Bank Account Management) commitment and mobile corporate banking services.
It is more important than ever for corporates to have solid and professional partners that will supply the resources they need to support their development.
We have a particular focus on developing our presence and the range of services we can offer to our corporate clients in these regions. In Asia, an area where we have ambitions to double our revenues in the next three years, for example, we recently announced a new Head of Asia who will take responsibility for all of the bank’s activities in the region, based in Hong Kong, who brings considerable experience of managing Asia Pacific operations.
In Latin America, we are adopting a similar strategy to Asia, with significant infrastructure now in Brazil and a presence across the region. In Africa, we recently opened a branch in South Africa to complement our existing presence in North and West Africa, enabling us to support the pan-African needs of our corporate clients.
Consequently, with a strong and growing presence in key countries such as Brazil, India and China, and a clear action plan for the next two to three years, we believe that we are well-positioned to satisfy the evolving needs of the corporate community.
With economic and regulatory challenges persisting for the foreseeable future, it is more important than ever for corporates to have solid and professional partners that will supply the resources they need to support their development, including financial support and innovative services across the spectrum of their cash management, liquidity, trade, foreign exchange, investment, capital markets and specialist financing requirements. At BNP Paribas, we recognise our crucial role in supporting our corporate clients’ business objectives, and we will continue to focus on delivering these services in the professional and responsible way that has made us successful over the past few years.
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