Bank of America Merrill Lynch is planning to roll out its banking services, including structured products, to wealthy Brazilians next year, in a move to maximise its newly established Brazilian wealth management operation.
The US bank expects to have banking services available locally by the end of Q2 next year. Merrill Lynch set up its wealth management operation in Brazil last November, with 15 financial advisers now catering to clients with more than $1m in net assets. Antonio Costa, a Merrill director in Sao Paulo, said in an interview with Dow Jones that the bank is awaiting a licence to operate deposit and lending services. He said the bank will add five or six more advisers in Sao Paulo.
To compete with local and international wealth management houses, BoA ML will position itself as a one-stop shop offering access to stocks, treasury products, credits, research, structured products, investment banking solutions, portfolio management, as well as deposits and lending.
According to the latest World Wealth Report by Capgemini and Merrill Lynch, Brazil ranked 11th globally in terms of high net worth population in 2009, with 147 individuals worth at least $1m in assets. Eighty seven per cent of these Brazilian millionaires have at least $30m to invest. Costa said the Brazilian wealth market is estimated at $200bn, with an annual growth rate of 25%.
Merrill is among the latest of the big international firms cashing in on this growing wealth. UBS recently re-opened its wealth management operations in Brazil, and Royal Bank of Canada last year opened a new wealth management office in Sao Paulo.