Spanish bank to set up shop in Toronto as trade ties deepen

TORONTO One of the biggest banks in Spain has opened an outpost on Bay Street.

CaixaBank SA announced last week that the new representative office in Toronto, its first in the city, will offer support and advisory services related to trade and corporate banking. It also makes CaixaBank the sole Spanish bank with a physical presence in Canada, the lender said in a press release.

The office will cater to Spanish companies doing business in Canada and Canadian firms doing business in Spain, as the lender said it aims to “consolidate its position as a benchmark bank in Canada for companies operating in the two countries.”

CaixaBank touts itself as Spain’s leading retail bank, with approximately 15.7 million customers and 388 billion euros in assets, according to its most recent financial results. Its biggest shareholder is a holding company entirely owned by the “la Caixa” Banking Foundation, which holds a 40-per-cent stake in CaixaBank.

The opening of CaixaBank’s Toronto office is the Spanish lender’s second foray into North America, and follows the opening of a New York office in 2015. CaixaBank also has representative offices in Colombia, Peru, Brazil and Chile.

“The incorporation of Canada into the network of countries in which our international banking business is present strengthens our presence in North America, a very attractive market for Spanish companies, with significant potential for future growth,” said Jordi Gual, CaixaBank’s chairman.

Canada, the bank said, offers “significant benefits” for Spanish companies, such as its financial stability. The lender also noted that Canada was ranked by the World Bank as the 22nd easiest country in the world to do business. But another draw appears to be the trade ties between Canada and Spain.

CaixaBank, citing the Spanish Institute for Foreign Trade, said Spanish exports and imports to and from Canada rose by 10.5 per cent and 30 per cent, respectively, in 2017.

The Spanish bank’s entrance into Canada follows the freetrade deal reached between Canada and the European Union: The Canada-European Union Comprehensive Economic and Trade Agreement, or CETA, came into force in 2017.