Away from Brazil and back in just over 10 years. The link between the Entente and the largest of the South American countries may seem paradoxical, but it is linked to specific business reasons. After years of investing in the Brazilian market, the Italian Bank decided to leave it in 2003. Today however, despite the country's new socio-economic problems, it aims to return.
At the end of the 200s, the institute had about 1991 branches in Brazil, while today there is only one representative office left in São Paulo, active since XNUMX, which mainly carries out consultancy activities. “A year and a half ago we started the procedure with the Brazilian central bank to obtain authorization to resume operations, which could begin by the middle of next year – explains Daniele Fanin, of Intesa Sanpaolo's international corporate management -. It will be a corporate bank that will offer our customers financing also in local currency, guarantees, foreign exchange and derivatives operations".
Just three years ago, Brazil's gross domestic product was growing at an annual rate of 7,5%. Now, however, the conditions are very different: the country is crossed by popular protests most impressive in the last 20 years and in 2012 GDP recorded a timid +0,9%, the worst result since 2009. The question is obvious: why does Intesa choose to return just when the great growth seems to be over?
Prospects are certainly not the best in Europe, where the group is more present, and from the Bank's point of view some imbalances that Brazil has to resolve today, for example on the investment front, represent an opportunity. “The country has a satisfactory rating and there is also interesting room for growth for the banking system – continues Fanin -. Furthermore, the general quality of the credit does not raise particular alarms, since the average of non-performing loans does not exceed 3,5%”. In addition, the Brazilian banking system lacks those giants that elsewhere make it particularly difficult for new institutions to access.
Fanin underlines that Intesa's goal is to collaborate with "Italian companies operating in sectors ranging from construction to infrastructure, plant engineering, construction machinery, sports and hotel equipment, transport, without neglecting the energy, oil and gas sectors”. But among these various sectors, most expectations undoubtedly focus on infrastructure, since the plan approved by the government is worth something like 800 billion dollars by 2016.
