The number of agencies brought to 200 against 150 initially

International development is no longer a simple figure of style for French banks. Since the end of the 1990s, Société Générale is is firmly established in Central Europe, while with BancWest BNP Paribas has developed a choice position in the American West. But these last 18 months, the pace of operations abroad has significantly intensified.

Since the beginning of 2005, the three largest banks French spent almost 17 billion EUR from abroad in retail banking and financial services specialist, of which EUR 9 billion for the single purchase of Banca Nazionale del Lavoro (BNL) by BNP Paribas. This figure are added the investment related to organic growth, including agencies openings. "End of 2006, the group will be 3.200 agencies abroad, against nearly 2,200 in France", summarizes Jean Clamon, Associate Executive Director of BNP Paribas.

Party the last on the road to internationalization, Credit Agricole launched Overdrive since January: the Group has used EUR 4.3 billion to shopping (EAB, Emporiki, Index Bank, BES, Fidis, etc.), but may at any time go to the assault of a bigger target in Western Europe. This winter, its leaders have seriously considered the acquisition of the British Alliance & Leicester, before throwing the sponge, and placed forward the opening to the private sector of the German savings banks. But, today, their focus is on the Italy where their participation in Banca Intesa is called to evolve, as a result of the merger with Sanpaolo IMI Bank. The negotiations could lead to the purchase of a network of regional banks in the peninsula.

Emerging markets targeted

For the Société Générale retail bank, the priority goes to emerging markets. "We have no vocation to go in the more mature markets of Europe." "We seek instead to implement in less saturated countries", explains Philippe Vigue, Executive Director of the Bank of retail non-metropolitan France. In addition to its long-standing presence in Central Europe (Czech Republic, Romania, Bulgaria, etc.), the Bank extends its canvas in Russia, with its rise in the capital of Rosbank, and wishes to grow in Poland, Hungary, Ukraine and Bulgaria. Société Générale also further, look to the Georgia, the Kazakhstan or the Azerbaijan, and sub-Saharan Africa... "One cannot ignore the country oil and gas, or mineral-rich", said Philippe Vigue. Finally, Asia is now part of its targets. In addition to China, where she covets to Citigroup, Guangdong Development Bank, she studied including the Viet Nam and the India.

The geography of BNP Paribas is even more fragmented since it has the Western United States, Western Europe and emerging countries. "But, today, the operating conditions are not favourable in the United States and the prices are too high," said Jean Clamon. In Western Europe, the next few months will be widely used in the merger with BNL: "We did not intend to achieve in the medium term of operation of this magnitude," has several times indicated Baudouin Prot, CEO of BNP Paribas. Emerging countries, the Bank is highly selective: "potential targets must have a reasonable price and grow markets for more than 13 to 15 million inhabitants, displaying very strong growth of per capita income and a low rate of penetration of banking products with a potential for growth", says Jean Clamon. The Brazil or the Mexico meet these criteria, but the acquisition in retail banking opportunities are rare.

Opening of agencies

Therefore, the coming months will be mainly devoted to take advantage of the recent settlements: in China, where BNP Paribas owns 19 of Nanjing City Bank; in Ukraine, where UkrSibbank should save this year a doubling of its production of credits and continues to expand its network. and Turkey, where TEB, held 50 by the French, gives any satisfaction: "we currently open 60 agencies per year to wear their number at approximately 300 by 2008", indicates Jean-Jacques Santini, responsible for retail banking in emerging markets to BNP Paribas. Programme of opening agencies in Russia, he will start this fall and will run until 2009. The number of agencies brought to 200, against 150 initially.