Santander, BNP Paribas Reexamine Corporate Strategy

Two major banks late last week took a renewed look at their corporate banking strategies, according to Friday (Oct. 30) reports.

BNP Paribas Chief Financial Officer Lars Machenil reportedly remarked that he will be looking to obtain greater market share among corporate clients as rivals take steps away from the industry.

The French bank released its quarterly earnings figures late last week and posted a nearly 15 percent increase in profits in the third quarter compared to Q3 2014. International operations helped fuel the numbers, BNP Paribas said.

However, reports noted that pre-tax income dropped 21.7 percent compared with the same period a year prior following greater expenses to comply with U.S. regulations.

Earlier this year BNP Paribas made an initiative to act as an ally to its corporate customers, looking to expand globally through publishing a cross-border payments guide for these firms. It may signal the bank’s desire to ramp up corporate banking services on an international scale.

At the same time, Santander Global Corporate Banking, which released its quarterly report late last week, said it will look to enter new markets to pick up the slack on sluggish numbers.

The Spanish bank said slowing growth can be attributed to its assets in Brazil, and it would look to other markets like the U.S. to pump up its finances. At present, reports said, the bank’s U.S. operations are worth just 9 percent of total earnings.

Analysts also cited U.S. regulation as another factor stunting Santander’s growth. Last July the Federal Reserve came down hard on the bank by requiring it to overhaul its risk assessment practices in the country.

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