Banco Santander SA and BBVA SA are intensifying their push to capture corporate and investment banking market share in the United States, transforming a sector of their operations that previously drew minimal analyst attention into a central theme of their recent earnings calls. The strategic expansions have generated substantial growth alongside pointed questions regarding financial exposure to the rapid build-out of artificial intelligence and data center infrastructure.
During the third quarter, BBVA experienced a 78% surge in corporate and investment bank loans within the United States, reaching nearly €40 billion, or approximately $44.6 billion. Meanwhile, Banco Santander reported a 38% increase, bringing its loan portfolio in the sector to €46 billion. This rapid accumulation of assets prompted analysts to question both lenders about their risk management and exposure levels as financial markets grapple with the massive capital requirements demanded by the artificial intelligence boom.
Executive leadership at both institutions have moved to reassure markets regarding their lending criteria and risk profiles. BBVA Chief Executive Officer Onur Genc emphasized a cautious approach during discussions with analysts, stating that the institution remains selective. Genc pointed to the bank’s long-standing background in project finance as a core competitive differentiator, asserting that their historical expertise provides advantages that other lenders lack.
Historically recognized for expansive retail operations spanning regions such as Latin America, the two European lenders have pursued distinct pathways to establish their footprint in the United States. Santander launched its aggressive expansion initiative three years ago by securing a series of high-profile hires to build out its investment banking division. That strategy culminated this year in an agreement to acquire Webster Financial Corp., marking one of the largest corporate takeovers by a European financial institution in the United States.
Conversely, BBVA divested its traditional US retail operations in 2020. The bank currently delivers investment banking services through established offices located in New York and Houston, and it has outlined plans to launch a new corporate and investment banking office in Miami, where it already maintains a private banking presence. While both organizations have traditionally favored corporate banking over pure advisory-driven investment banking, they argue that their collective experience in project finance mitigates potential vulnerabilities.
Executives maintain that the financial risks linked to data center and artificial intelligence financing remain negligible relative to their overall financial standing. According to both banks, exposure connected to these sectors accounts for less than 1% of their total balance sheets. Santander CEO Héctor Grisi addressed stakeholder concerns directly, affirming that management maintains strict oversight of the portfolio and possesses deep familiarity with managing such credit structures.
Despite sharing a broader ambition to capture US corporate banking business, the two institutions are pursuing divergent operational strategies. Santander is deploying a comprehensive investment banking model that encompasses traditional lending alongside capital markets and advisory services. BBVA is maintaining a narrower focus centered primarily on debt financing, with Genc confirming that the bank has no immediate ambitions to expand into merger and acquisition advisory services within the country.
