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Brazil
BNP Paribas Securities Services
These scores represent a sharp improvement on the disappoint-
ing returns of a year ago, clearing the local benchmarks with
ease in all areas. Even in the ever-testing field of pricing, the
French bank eclipses the local competition. “Really pleased with
the level of service and responsiveness to our needs,” confirms a
client. This is a reward for a degree of commitment other custo-
dians lacked, as well as a promising augury for the future.
Since opening a securities services operation in São Paulo in
2010 – at the height of the Brazilian economic boom – BNP Par-
ibas has persisted through the bust. It is now well-entrenched as
both a fund administrator and a custodian to domestic as well as
foreign asset managers and investors.
Citi
Citi is looking after some major clients here. Their assessment
of the quality of the services is mixed and exhibits the char-
acteristic Citi combination of strengths in client service and
clearing and settlement offset by less-than-stellar returns on
the safekeeping side. One thing the respondents clearly do not
doubt, despite the exit of the bank from retail banking in Brazil,
is the Citi commitment to this market. A bank that first came to
the country over a century ago is still looking to profit from the
flow of capital into and out of Brazil.
Itaú Unibanco
Itaú bought the Citi retail assets in Brazil in 2016. Now the
largest indigenous bank in the region, let alone the country, Itaù
has built a sizeable sub-custody business in its home country.
The average scores are less pleasing than those of a year ago, but
they are consistent, fading seriously in only a single area and
rising noticeably in one other. Importantly, respondents have no
doubts that their assets are safe with the BB-rated bank.
Banco Bradesco
Bradesco is a large retail bank, but it has built a strong reputa-
tion in investment banking and asset management as well, partly
through acquisition. The average scores earned by its custody and
clearing operations, albeit from a group of respondents too small
in number to warrant a rating, do not enjoy the same lustre. They
suggest room for improvement in banking services in particular,
but clients also indicate they are prepared to be patient.
Santander Securities Services Brasil
Santander is the largest foreign bank in Brazil. Last year, the
country was the single largest source of income as well as cus-
tomers for the Spanish bank. However, its local custody opera-
tion was one of four that the Spanish bank placed into the ven-
ture with Warburg Pincus four years ago. Not enough responses
were received to rate the bank.
Others
A small number of responses were also received for Deutsche
Bank and J.P. Morgan, which launched a direct custody opera-
tion here with considerable fanfare back in 2011.
WEIGHTED AVERAGE SCORES
BNP Paribas
Citi
Itaú Unibanco
Banco Bradesco
Santander
Share of validated responses (%) 21% 29% 17% 13% 13%
Relationship management 4.97 4.67 3.86 n/a n/a
Market Average Global Average
4.43 5.30
Client service 5.30 4.92 5.57 n/a n/a 5.21 5.56
Account management 5.18 4.60 4.00 n/a n/a 4.53 5.14
Asset safety 5.65 3.71 2.40 n/a n/a 4.29 4.60
Risk management 5.38 4.95 4.67 n/a n/a 4.97 5.50
Liquidity management 5.76 4.81 4.57 n/a n/a 5.00 5.14
Regulation and compliance 4.44 4.17 4.00 n/a n/a 4.26 4.84
Innovation 4.04 4.10 4.38 n/a n/a 4.10 4.75
Asset servicing 5.69 5.55 5.07 n/a n/a 5.41 5.52
Pricing 5.94 4.74 4.62 n/a n/a 5.05 5.28
Technology 5.95 5.19 5.67 n/a n/a 5.62 5.41
Cash management and FX 5.73 5.22 4.50 n/a n/a 5.16 5.42
Total 5.25 4.72 4.46 n/a n/a 4.84 5.23
62
Global Custodian
Winter 2018