Rapid loan growth and the scrutiny that followed
BBVA told investors its U.S. corporate and investment bank lending jumped 78% in the third quarter, reaching just shy of €40 billion, or $44.6 billion. Santander said comparable loans climbed 38% to €46 billion. That kind of ramp has turned a once-overlooked division into a talking point on earnings calls.
The momentum also drew questions about exposure to data centers and AI, given the large funding needs for the AI buildout. Executives at both banks said the risk associated with financing for AI and data centers amounts to below 1% of their balance sheet.
How each bank is approaching the U.S.
These lenders are best known for broad retail franchises in regions such as Latin America, but they have been building out U.S. operations. Three years ago, Santander kicked off a push with a slate of high profile hires to expand its investment-banking arm; this year it reached an agreement to acquire Webster Financial Corp., placing it among the biggest U.S. takeovers by a European lender.
BBVA sold its U.S. retail arm in 2020, yet continues to offer investment banking from New York and Houston, and plans to add a Miami office for investment and corporate banking where it also provides private banking. Santander is taking a wider U.S. investment banking approach that goes beyond lending to include markets and advisory services, while BBVA is leaning into debt products and its CEO said he does not plan to expand merger advisory in the country.
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What the leaders say they bring
Both banks have historically skewed toward corporate banking over pure investment banking and say long experience in project finance gives them an edge. BBVA CEO Onur Genc told analysts, "We will be very selective," adding, "Again like in project finance, which we think we have something better than others because we have been in that business for so long." Santander CEO Héctor Grisi said, "We are on top of that, and this is something that we know how to do very well."
Why this matters for your portfolio
In plain English: they are chasing growth in the U.S. with a broader Santander playbook and a more debt-focused BBVA approach, while arguing the riskiest pockets remain small relative to total assets.
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