Global Custodian Fall 2018 | Page 94

[ S U R V E Y | A G E N T B A N K S I N M A J O R M A R K E T S ] Portugal BNP Paribas Securities Services Lisbon is home to an international operations centre that BNP Paribas Securities Services opened here in 2008, so the bank is invested here in ways that were not envisaged when it launched its Portuguese custody operation in 1999. Naturally, most of the respondents are using BNP Paribas in multiple markets, and the scoring reprises some familiar themes. Client service is manned by knowledgeable and responsive people. RMs are top quality. Trades always settle on time, but asset-servicing is patchy. BNP Paribas is more innovative than most. Cash management and FX services are satisfactory, but more choice and readier disclosure of costs would be welcome. Likewise, the services are competi- tively priced, but that does not mean clients would not like them to be lower, and more flexibly structured. BNP Paribas could also do more help its clients manage cash and stock borrowing costs down and work harder to put their collateral to its most remunerative use. Millennium bcp Banco Comercial Portugues (BCP) is only just over 30 years old but, after making a string of acquisitions before the financial crisis and maintaining its autonomy through both that crisis and the subsequent sovereign debt crisis that hit Portugal in 2010-14, it is now the largest commercial bank in the country. The small number of clients that responded are not quite large enough in number to confirm these findings about service quality, but the averages they generate are flattering in the extreme across all operational areas. The only visible blips lie in client service and relationship management. It received impressive scores last year too, but these are even better. Deutsche Bank The German bank has provided a custody service here since 2008, initially as part of a service provided by a combination of local and remote operations spanning the then four Euronext markets, but much has changed in the Portuguese economy since then, though the stock market has made little upward pro- gress since the acute phase of the sovereign debt crisis ended in 2014. Interestingly, Deutsche Bank made a point of stressing that the recent sale of its private and commercial banking business in Portugal to a Spanish buyer did not signal any loss of commit- ment to servicing financial institutions here. The small number of respondents certainly think the bank provides a good service in Lisbon, though they would like the client service to be better and the price of the services to be lower. Novo Banco The successor to the failed Banco Espirito Santo (BES), now owned by a fund managed by an American private equity fund, attracted a small number of responses, which suggest that the core services are satisfactory, but the bank should invest in RMs. Santander Securities Services Santander, did not attract enough responses to be assessed in full, but those clients that did respond offered a flattering verdict. WEIGHTED AVERAGE SCORES BNP Paribas Millennium BCP Deutsche Bank Novo Banco Santander Securities Market Average Services Market share (% of responses) 67% 17% 8% 4% 4% Relationship management 5.50 5.44 n/a n/a n/a 5.38 5.20 Client service 5.68 5.58 n/a n/a n/a 5.53 5.40 Account management 5.41 6.01 n/a n/a n/a 5.53 5.44 Asset safety 5.92 6.34 n/a n/a n/a 5.99 5.68 Risk management 5.48 5.88 n/a n/a n/a 5.58 5.46 Liquidity management 4.90 n/a n/a n/a n/a 5.11 4.89 Regulation and compliance 5.68 6.34 n/a n/a n/a 5.67 5.64 Innovation 5.72 6.20 n/a n/a n/a 5.62 5.18 Asset servicing 5.06 5.85 n/a n/a n/a 5.24 5.09 Pricing 4.97 6.27 n/a n/a n/a 5.15 4.82 Technology 5.22 6.00 n/a n/a n/a 5.33 5.28 Cash management and FX 4.34 5.50 n/a n/a n/a 4.38 4.25 Total 5.33 5.92 n/a n/a n/a 5.41 5.24 94 Global Custodian Fall 2018 Global Average