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Following Bradesco deal, HSBC looks to revive wholesale ops in Brazil

Following the recent saleof HSBC Bank Brasil SAto Banco Bradesco SA,HSBC Holdings Plc hasobtained authorization to operate as an investment bank in the country, Valor Econômico reported.

The British banking giant injected 1 billion Brazilian reaisin its remaining operations in the country and has established new offices in SãoPaulo with a staff of about 50 employees who serve about 160 clients in the country.However, the bank is looking to more than double its client base in the coming yearsand to grow its staffing levels to about 200, the head of HSBC operations in Brazil,Alexandre Guião, reportedly said.

As part of its expansion plans, HSBC is also planning to reviveits wholesale business in Brazil, although the company must wait until an anti-competitionclause as part of the Bradesco deal ends. Reportedly, the clause is set to expirein 2019.

"Our business plan already includes the bank's growth afterthis period," Guião was quoted as saying in an interview. Theexecutive declined to confirm the clause's expiration date, citing confidentialityissues.

Meanwhile, Bradesco's investment banking unit is also looking togain market share in Brazil as foreign banks have retreated from the country, Valor reported separately.

As of Sept. 23, US$1 wasequivalent to 3.23 Brazilian reais.