Banco Espírito Santo
Encyclopedia
Banco Espírito Santo is a private Portuguese
bank, based in Lisbon
.
The Banco Espírito Santo’s origins began with the lottery
, currency exchange and securities business carried out by José Maria do Espírito Santo e Silva between 1869 and 1884. The first references to trading that the “patriarch of the only dynasty of Portuguese bankers” was undertaking, was in the purchase and sale of lotteries, along with national and international transactions in loan securities, on his own account. This took place in his “Caza de Cambio”, situated in centre of Lisbon, dated back to the second half of the 19th century (1869). Since then and until 1920, he founded a number of banking institutions, such as Beirão, Silva Pinto & Cª., (1884-1887), Silva, Beirão, Pinto & Cª. (1897-1911), J. M. Espírito Santo Silva (1911-1915) and J. M. Espírito Santo Silva & Cª. (1915).
In 1915 after the death of José Maria do Espírito Santo e Silva these firms were dissolved and his heirs founded the Casa Bancária Espírito Santo Silva & Cª which was transformed into a public limited-liability company in 1920 under the name Banco Espírito Santo with the bank, in this decade, managing to consolidate its position within the context of national banking by opening agencies and using a renewed management model.
In 1937 the bank strengthened its position in commercial banking through a merger with Banco Comercial de Lisboa, to form Banco Espírito Santo e Comercial de Lisboa (BESCL) which again changed its name to BES in 1999.
Up to the mid 1970’s BESCL reinforced its international presence with acquisitions, partnerships and the creation of banks in countries such as the USA, Angola
, United Kingdom
, among others. Under a Decree Law of 1975 the bank was nationalised and the Espírito Santo family was prevented from doing business in Portugal. Within this context the family re-established its financial interests abroad in countries such as Brazil
, Switzerland
, France
and USA, culminating in 1975 with the creation of a holding company
based in Luxembourg
This company was predecessor of the Espírito Santo Financial Group
(ESFG). The return to Portugal began in 1986 in partnership with Crédit Agricole
and with the support of a core group of Portuguese shareholders. They formed the Banco International de Crédito (BIC), also forming Espírito Santo Sociedade de Investimentos (ESSI), together with Swiss
bank UBS and KBC Bank
of Luxembourg
.
In 1990, the Espírito Santo Group recovered Companhia de Seguros Tranquilidade (the Espirito Santo family held a stake since 1935) and the control of Banco Espírito Santo in 1991 with the creation of a holding company between ESFG and Crédit Agricole, called BESPAR.
In 1992 BES began operating in the Spanish
market where it created Banco Espírito Santo Espanha (BESSA) and in 1995, to open Banco Espírito Santo do Oriente (BESOR). Also in 2001 BES Angola, a bank formed under Angola
n law was founded.
It is currently the largest listed Portuguese bank, with a stock market capitalisation of 3,200 million Euro
s on the 31st of May 2011; it is the sixth largest on the PSI-20
index.
BES is the second largest private financial institution in Portugal in terms of net assets (80,700 million Euros in Mar. 2011), with an average market share of 20.3% in Portugal and 2.1 million clients.
BES has had a stable shareholder structure since 1991. The main shareholders, ESFG and Crédit Agricole hold 50.8% of the capital.
The Group’s presence today is felt in 23 countries on 4 continents through branches, offices of representation or sub-companies, making the Banco Espírito Santo Group the most international of the Portuguese financial groups.
Since 2007, BES has been the only Portuguese bank to be included on the sustainability index FTSE4Good Index
reinforcing its positioning as a socially responsible institution.
On the 3rd of January 2011, BES was nominated "Best Trade Financial Bank" in Portugal, for the 5th consecutive year by the magazine Global Finance.
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
bank, based in Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
.
The Banco Espírito Santo’s origins began with the lottery
Lottery
A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...
, currency exchange and securities business carried out by José Maria do Espírito Santo e Silva between 1869 and 1884. The first references to trading that the “patriarch of the only dynasty of Portuguese bankers” was undertaking, was in the purchase and sale of lotteries, along with national and international transactions in loan securities, on his own account. This took place in his “Caza de Cambio”, situated in centre of Lisbon, dated back to the second half of the 19th century (1869). Since then and until 1920, he founded a number of banking institutions, such as Beirão, Silva Pinto & Cª., (1884-1887), Silva, Beirão, Pinto & Cª. (1897-1911), J. M. Espírito Santo Silva (1911-1915) and J. M. Espírito Santo Silva & Cª. (1915).
In 1915 after the death of José Maria do Espírito Santo e Silva these firms were dissolved and his heirs founded the Casa Bancária Espírito Santo Silva & Cª which was transformed into a public limited-liability company in 1920 under the name Banco Espírito Santo with the bank, in this decade, managing to consolidate its position within the context of national banking by opening agencies and using a renewed management model.
In 1937 the bank strengthened its position in commercial banking through a merger with Banco Comercial de Lisboa, to form Banco Espírito Santo e Comercial de Lisboa (BESCL) which again changed its name to BES in 1999.
Up to the mid 1970’s BESCL reinforced its international presence with acquisitions, partnerships and the creation of banks in countries such as the USA, Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, among others. Under a Decree Law of 1975 the bank was nationalised and the Espírito Santo family was prevented from doing business in Portugal. Within this context the family re-established its financial interests abroad in countries such as Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and USA, culminating in 1975 with the creation of a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
based in Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
This company was predecessor of the Espírito Santo Financial Group
Espírito Santo Financial Group
The Espírito Santo Financial Group is a portuguese holding company with headquarters in Luxembourg, founded in 1984. The group represents the interests of the Portuguese Espirito Santo Group, which has major investments in Portugal and Europe, Americas, Africa and Asia.The company is listed on the...
(ESFG). The return to Portugal began in 1986 in partnership with Crédit Agricole
Crédit Agricole
Crédit Agricole S.A. is the largest retail banking group in France, second largest in Europe and the eighth largest in the world by Tier 1 capital according to The Banker magazine. It is also part of the CAC 40 stock market index....
and with the support of a core group of Portuguese shareholders. They formed the Banco International de Crédito (BIC), also forming Espírito Santo Sociedade de Investimentos (ESSI), together with Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
bank UBS and KBC Bank
KBC Bank
KBC Bank N.V. is a Belgian universal multi-channel bank, focusing on private clients and small and medium-sized enterprises. Besides retail banking, insurance and asset management activities , KBC is active in European debt capital markets, domestic cash equity markets and in the field of corporate...
of Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
.
In 1990, the Espírito Santo Group recovered Companhia de Seguros Tranquilidade (the Espirito Santo family held a stake since 1935) and the control of Banco Espírito Santo in 1991 with the creation of a holding company between ESFG and Crédit Agricole, called BESPAR.
In 1992 BES began operating in the Spanish
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
market where it created Banco Espírito Santo Espanha (BESSA) and in 1995, to open Banco Espírito Santo do Oriente (BESOR). Also in 2001 BES Angola, a bank formed under Angola
Angola
Angola, officially the Republic of Angola , is a country in south-central Africa bordered by Namibia on the south, the Democratic Republic of the Congo on the north, and Zambia on the east; its west coast is on the Atlantic Ocean with Luanda as its capital city...
n law was founded.
It is currently the largest listed Portuguese bank, with a stock market capitalisation of 3,200 million Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s on the 31st of May 2011; it is the sixth largest on the PSI-20
PSI-20
The PSI-20 is a benchmark stock market index of companies that trade on Euronext Lisbon, the main stock exchange of Portugal. The index tracks the prices of the twenty listings with the largest market capitalisation and share turnover in the PSI Geral, the general stock market of the Lisbon exchange...
index.
BES is the second largest private financial institution in Portugal in terms of net assets (80,700 million Euros in Mar. 2011), with an average market share of 20.3% in Portugal and 2.1 million clients.
BES has had a stable shareholder structure since 1991. The main shareholders, ESFG and Crédit Agricole hold 50.8% of the capital.
The Group’s presence today is felt in 23 countries on 4 continents through branches, offices of representation or sub-companies, making the Banco Espírito Santo Group the most international of the Portuguese financial groups.
Since 2007, BES has been the only Portuguese bank to be included on the sustainability index FTSE4Good Index
FTSE4Good Index
The FTSE4Good Index series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group. A number of stock market indices are available, for example covering UK shares, US shares, European markets, and Japan, with inclusion based on a range of corporate social...
reinforcing its positioning as a socially responsible institution.
On the 3rd of January 2011, BES was nominated "Best Trade Financial Bank" in Portugal, for the 5th consecutive year by the magazine Global Finance.
See also
- Espírito Santo Financial GroupEspírito Santo Financial GroupThe Espírito Santo Financial Group is a portuguese holding company with headquarters in Luxembourg, founded in 1984. The group represents the interests of the Portuguese Espirito Santo Group, which has major investments in Portugal and Europe, Americas, Africa and Asia.The company is listed on the...
- Banco Espírito Santo AngolaBanco Espírito Santo AngolaBanco Espírito Santo Angola, known as "BESA", is a bank in Angola. Along with the original Banco Espírito Santo in Portugal, BESA is a subsidiary of the Espírito Santo Financial Group, or ESFG....
- Inter-Alpha Group of BanksInter-Alpha Group of BanksThe Inter-Alpha Group of Banks was created in 1971 by six European Community banks in order to provide a platform for the regular exchange of ideas and to explore areas for cooperation between its member banks...