BNP Paribas Securities Services is targeting 30% average annual growth rate in revenues from the U.S. custody business by 2016, with part of that growth potentially coming from its “aggressive” acquisition agenda, said Patrick Colle, general manager at the custody bank.
“We have (targeted) an aggressive (compound annual growth rate) of 30% per annum in North America (revenues),” he told journalists at a media event on Wednesday in London. “In fairness, that is starting from a very low base (since the U.S.) is a new initiative, but in the U.S., even what is small is big.”
Mr. Colle said acquisitions would be an important part of growth, citing recent deals such as its 2013 transaction to acquire Commerzbank's Depotbank business for German-domiciled UCITS and institutional funds.
“You should expect that we are going to be more aggressive with our acquisition agenda,” Mr. Colle said. “We are looking at things that could be bigger than what we have done in the past. Have we got things in the pipeline? Yes. The key is that we are very disciplined — acquisitions are not just to create size, but to match our strategy of being a global player in the key markets. The rationale is either to fill gaps in our product or segment areas, or in geographies.”
Mr. Colle said the $8 trillion custody bank will focus on providing U.S. services for non-U.S. global clients, and will also provide non-U.S. services to U.S. clients.
He said the end of 2013 was a “turning point” for the firm in relation to the origin of new business, with a quarter of new client money coming from outside Europe. He said that figure is usually only about 10% to 20%.
The firm is also aiming to hit $10 trillion in assets under custody over the next two years. “It is a big number, but I think we can beat it,” Mr. Colle said.