Banesco USA

Powering Puerto Rico’s Commercial Future

Relationship Banking, Local Expertise, and a Commitment to Construction Are Helping Drive Economic Development Across the Island

Puerto Rico’s economic story has always been one of resilience. Through changing market conditions, workforce challenges, evolving regulations, and shifting development priorities, the island continues to reinvent itself while building for the future. At the center of that progress are financial institutions willing to invest not only capital, but also confidence in the businesses, developers, and entrepreneurs shaping Puerto Rico’s next chapter.

For Banesco USA, that commitment has been decades in the making. While many banks focus heavily on consumer products and retail banking, Banesco USA has carved out a distinct niche by concentrating on commercial banking and developing deep relationships within Puerto Rico’s business community. The result is a banking operation that has grown steadily while helping finance projects that strengthen healthcare, housing, hospitality, infrastructure, and economic development throughout the island.

With roots in an international banking group operating in multiple countries, Banesco USA has maintained a presence in Puerto Rico for 30 years and has operated as a full-service bank on the island for two decades. Throughout that time, the organization has remained focused on a simple but increasingly valuable proposition: provide customized solutions, respond quickly, and understand the local market better than anyone else.

That approach has allowed the bank to become a significant player in Puerto Rico’s commercial sector while continuing to expand its footprint and influence.

Built on Commercial Banking Excellence

Banesco USA operates differently from many traditional banks. Rather than competing in every segment of financial services, the institution has concentrated its efforts on commercial banking, commercial real estate, construction lending, and support for operating businesses.

“Our real expertise and our core niche is commercial banking,” says Calixto (Cali) García-Vélez, President & CEO of Banesco USA. “That is what we do exceedingly well in commercial real estate, commercial and industrial operating companies, and professionals.”

That focus has proven particularly effective in Puerto Rico, where businesses often seek personalized attention and flexible solutions that larger institutions may struggle to provide.

According to Maritza Abadía, President of Banesco USA in Puerto Rico, the Puerto Rico operation has differentiated itself through responsiveness and certainty of execution from the beginning.

“We started by providing solutions and responding fast with certainty of execution,” says Baez. “I think that has been a very important differentiating factor for us.”

The results speak for themselves. Over the past 14 years, Banesco USA’s Puerto Rico team has grown its local deposit portfolio to approximately $1.1 billion, serving business owners across a wide range of industries.

From left to right: Calixto (Cali) García-Vélez, Banesco USA CEO; Maritza Abadía, Banesco USA Puerto Rico Market President; and Carlos E. Escotet, Banesco USA Director, at the BanescoSelect launching in Puerto Rico last April.

In a competitive banking environment dominated by larger institutions, the bank’s ability to combine agility with relationship-based service has enabled it to steadily gain market share while remaining true to its commercial banking roots.

Financing the Foundations of Growth

The construction industry remains one of the most important drivers of economic activity in Puerto Rico, making access to capital a critical component of the island’s development.

Banesco USA has embraced that responsibility by actively financing projects that span multiple sectors and address a variety of community needs.

“We like the construction segment quite a bit, and we have a strong appetite for it,” says García-Vélez.

The breadth of projects financed by the bank demonstrates both its versatility and its confidence in Puerto Rico’s future. From residential housing developments and condominium projects to commercial facilities and infrastructure improvements, Banesco USA has become an important financial partner for developers and contractors.

Among the projects highlighted by the leadership team is the Hato Rey VA Clinic in Puerto Rico, a significant development that provides Mental Health Rehabilitation and Recovery Treatment services to veterans across the island.

“This is one project that we feel very proud of since it is the first of its kind built from zero and opened for veterans receiving psychosocial services on the island,” says Abadía.

The bank has also supported affordable housing developments, multifamily residential projects, office buildings, shopping centers, and hospitality ventures. Recently, Banesco USA provided a $65 million credit facility to the iconic El Conquistador resort as part of the property improvement plan, helping support one of Puerto Rico’s most recognizable hospitality destinations.

Its construction portfolio extends beyond traditional real estate as well. The bank is currently involved in financing a power generation facility at the Econo Distribution Center, illustrating its willingness to support projects that strengthen essential infrastructure.

These investments contribute to more than individual developments. They help create jobs, stimulate local economies, and provide facilities that serve communities long after construction is complete.

Navigating Industry Challenges

Despite the optimism surrounding development opportunities, Puerto Rico’s construction sector faces many of the same challenges affecting markets throughout North America.

Labor shortages continue to create difficulties for developers and contractors seeking skilled workers, while material costs remain elevated due to supply chain disruptions, tariffs, and global economic pressures.

“The situation is similar,” says Abadía. “In our dialogues with clients, they do mention that there’s a shortage of construction workers.”

The challenge affects projects across multiple categories, including housing, commercial developments, and rehabilitation initiatives.

“It is a fact that clients and general contractors do face that challenge,” says Abadía.

Material costs have presented another obstacle.

“There’s no doubt that the pandemic, the tariffs, and many factors do impact construction costs,” says Abadía. “We do face similar challenges regarding the cost of projects increasing 20 to 30 percent.”

While these realities have complicated development efforts, they have also highlighted the importance of strong banking relationships. Developers increasingly rely on lenders that understand market conditions and can adapt financing structures to accommodate changing circumstances.

For Banesco USA, maintaining close communication with clients allows the bank to respond proactively rather than reactively, helping businesses navigate uncertainty while continuing to move projects forward.

The Power of Local Knowledge

If there is one theme that consistently emerges when discussing Banesco USA’s success in Puerto Rico, it is the value of local expertise.

While the bank benefits from the resources and strength of a larger international organization, its Puerto Rico operation remains deeply rooted in the island’s business community.

“It’s critical,” says Abadía when discussing local market knowledge. “I think that’s perhaps one of the key points in us being successful.”

Understanding local regulations, market dynamics, development trends, and business relationships provides a competitive advantage that cannot easily be replicated.

“Having the local knowledge, having the contacts with the top operators and developers, it’s very important to be able to feel comfortable and understand the challenges that we face on the island,” says Abadía.

The bank’s leadership team believes that successful commercial banking requires more than financial expertise. It requires familiarity with the people and organizations driving economic activity.

“Banking is a local business,” says García-Vélez. “You’ve got to have boots on the ground of local bankers to be successful.”

That philosophy has guided the bank’s growth strategy and helped establish trusted relationships throughout Puerto Rico’s commercial sector.

Strong Partnerships Strengthen Communities

Banesco USA’s involvement extends well beyond individual lending relationships. The bank actively participates in organizations and associations that advocate for economic development and support business growth across Puerto Rico.

Among the most important of these relationships is its ongoing engagement with the Puerto Rico Builders Association, which plays a key role in advancing legislation and policies that benefit the construction industry.

“The Builders Association has been a key partner in driving legislation and making sure that the island is friendly toward the construction and development industries,” says Garcia-Velez.

The organization works closely with developers, contractors, financial institutions, and other stakeholders to address industry challenges and create conditions that encourage investment.

Abadía emphasizes the importance of collaboration among business groups.

“It’s very important to unite and have the force to get things done,” says Abadía.

The bank also maintains active involvement with the Puerto Rico Bankers Association and other industry organizations representing manufacturing, food production, and broader business interests.

These relationships provide valuable insight into emerging challenges while creating opportunities to collaborate on solutions that benefit Puerto Rico’s economy as a whole.

For Banesco USA, participation in these organizations reflects a broader commitment to supporting economic development rather than simply financing it.

Growth with Purpose

As Banesco USA looks toward the future, growth remains a central objective. Yet the bank’s leadership is clear that expansion alone is not the ultimate goal.

“We don’t aspire to be the biggest commercial lender in Puerto Rico,” says Garcia-Velez. “But we certainly aspire to be known as the best commercial lender in Puerto Rico.”

That distinction reflects the organization’s emphasis on service quality, responsiveness, and relationship banking.

The Puerto Rico operation has consistently achieved impressive growth, expanding its portfolio by more than 20 percent annually despite relatively modest economic growth on the island. Meanwhile, Banesco USA as a whole has surpassed $5.8 billion in assets while maintaining a strong trajectory across its markets.

Much of that success has been driven by a deliberate strategy focused on experienced bankers, local expertise, and long-term client relationships.

“Our biggest and best asset is our people,” says García-Vélez.

Puerto Rico remains a vital component of the bank’s broader growth strategy. Abadía and her team continue to identify opportunities to expand their presence while remaining focused on the qualities that have fueled their success.

“We plan to continue contributing more than our share for Banesco USA’s growth,” says Abadía.

The bank intends to continue supporting major projects across the island while attracting new clients who value personalized service and customized financial solutions.

Relationships That Last

In an increasingly digital world, where automation and technology often dominate conversations about the future of banking, Banesco USA remains committed to an approach that many consider timeless.

Relationship banking remains at the heart of its philosophy.

“I think that relationship banking, old-fashioned if you could call it, is what we plan to continue doing,” says Abadía.

That commitment extends beyond developers and construction companies. The bank also supports the broader ecosystem that makes development possible, including suppliers, manufacturers, transportation companies, and specialized trades.

According to García-Vélez, healthy construction industries depend on strong partnerships across every segment of the supply chain.

By understanding those interconnected relationships and maintaining a hands-on presence within the community, Banesco USA has positioned itself as more than a lender. It has become a partner in Puerto Rico’s progress.

As the island continues to invest in housing, healthcare, hospitality, and infrastructure, institutions capable of combining financial strength with local knowledge will play an increasingly important role. Banesco USA’s success demonstrates that growth is not simply about numbers on a balance sheet. It is about earning trust, building relationships, and helping communities create a stronger future.

For Puerto Rico’s builders, developers, and business leaders, that commitment may prove to be one of the most valuable investments of all.

AT A GLANCE

Who: Banesco USA

What: Commercial banking institution specializing in commercial real estate, construction lending, commercial and industrial lending, and relationship banking.

Where: Puerto Rico operations are based in San Juan as part of Banesco USA, headquartered in Miami, Florida.

Website: www.banescousa.com