Emerging Markets

Edited by Brian Caplen

Latin America: New moves by old conquistadors

Spain’s leading banks are taking markedly different approaches to their Latin American expansion. Banco Bilbao Vizcaya (BBV) and Banco Santander, each of which lays claim to being Spain’s biggest bank, are busy chasing returns on equity in Latin America well above domestic rates. And they both expect Latin American profits to contribute substantially to overall results. But their strategies for realizing these gains diverge sharply, with BBV going for joint ventures and Banco Santander looking for majority control or outright ownership.