Brazil’s growth might be continuing to disappoint but HSBC continuous to press ahead with ambitious plans for its comeback in the country.
According to Euro Money,
HSBC wants to triple both onshore and offshore revenues, profits and EBITDA in Brazil within five years.
HSBC sold its corporate and wholesale banking operations as part of the sale of its full Brazil business
to Bradesco in 2016. The bank then opened a new office in São Paulo to support the international business for Brazilian clients; while a non-compete clause prevented HSBC from doing any Brazilian-based business until December of last year, coinciding with the election of Jair Bolsonaro.
President Bolsonaro’s appointment of BTG Pactual co-founder Paulo Guedes as Brazil’s Economy Minister: bolstering bankers’ hopes for greater economic growth and financial markets activity.
, President of HSBC Brazil, remains optimistic towards the bank’s growth and expansion in Brazil, stating that
“Our aim is to build in 2019 and 2020 – the people and the products – and we have a plan to triple both onshore and offshore revenues, profits and ebitda within five years” (Euro Money
The bank revised its expectations for GDP growth to 2% from 2.9%, yet still remains at the high end of the range compared to a 2020 forecast of 2.6%.
Despite the Brazilian economy’s sluggish recovery – shrinking by 0.2% in the first quarter of 2019– the pipeline of equity deals has been continually building.
Guião expressed his views that Bolsonaro ́s administration should begin delivering the much-needed reforms to address the nation’s economic weakness and – coupled with the challenges of other large Latin Americans markets, like Argentina and Mexico – Brazil should be favoured by international investors.
“You have a lot of international investors looking to Brazil with interest and there will be a lot of money flowing to Brazil”.