The BNP Paribas Group will be consolidating its core businesses operations in Spain in the areas of specialized financial services, Finance and Investment Banking, Private Banking and Asset Management, insurance and securities custody. To this end, the Group will be selling off its less profitable interests and focusing greater resources on its more rapidly growing operations.
Selling Off Branches :
For a number of years now, BNP has kept up a retail banking network in Spain with some 70 branches. The small size of this network and the built-in costs of operating it have kept it for many years now from being profitable. BNP has therefore decided to sell off the network, and has initiated talks with other financial institutions to discuss the sell off its branches, all while maintaining as many jobs as possible.
Forming Subsidiaries Operating Through New Outlets :
Meanwhile, BNP Paribas is developing its business in Spain through specialized financial services. The Group's strategy for Western Europe is to expand sales of banking products through specialized distribution outlets adapted to each of the products. Thus, many of its subsidiaries have had successful operations for many years now in Spain: in consumer loans, Cetelem (under its arm known as Fimestic) has 1,000,000 holders of Aurore credit cards, UCB (under UCI) has granted over 40,000 mortgages to Spanish homeowners, and the businesses of the Group's other affiliates (UFB Locabail, Arval and Cardif) are growing rapidly in the country.
Under its strategic business plan, the BNP Paribas Group has made substantial capital investments in these businesses. These subsidiaries are therefore expected to see considerable growth.
Consolidating Private Banking and Asset Management Business Operations :
In this business segment, which is one of BNP Paribas' global strategic priorities, the Spanish market accounts for 22 million Euros, with a forecast 5% annual growth over the next 5 years.
Selling Off Branches :
For a number of years now, BNP has kept up a retail banking network in Spain with some 70 branches. The small size of this network and the built-in costs of operating it have kept it for many years now from being profitable. BNP has therefore decided to sell off the network, and has initiated talks with other financial institutions to discuss the sell off its branches, all while maintaining as many jobs as possible.
Forming Subsidiaries Operating Through New Outlets :
Meanwhile, BNP Paribas is developing its business in Spain through specialized financial services. The Group's strategy for Western Europe is to expand sales of banking products through specialized distribution outlets adapted to each of the products. Thus, many of its subsidiaries have had successful operations for many years now in Spain: in consumer loans, Cetelem (under its arm known as Fimestic) has 1,000,000 holders of Aurore credit cards, UCB (under UCI) has granted over 40,000 mortgages to Spanish homeowners, and the businesses of the Group's other affiliates (UFB Locabail, Arval and Cardif) are growing rapidly in the country.
Under its strategic business plan, the BNP Paribas Group has made substantial capital investments in these businesses. These subsidiaries are therefore expected to see considerable growth.
Consolidating Private Banking and Asset Management Business Operations :
In this business segment, which is one of BNP Paribas' global strategic priorities, the Spanish market accounts for 22 million Euros, with a forecast 5% annual growth over the next 5 years.