BBVA has a gold mine in Mexico. Not with little risk due to the country’s instability, but a gold mine. This geography is the one that contributes the most to the benefit of the group; 777 million euros in the first quarter of 2022, and growing. That is why the bank’s commitment to the territory is firm and they transmit it every time they can.
Carlos Torres, president of the entity, has visited Mexico in recent days to show his commitment. “We are convinced that Mexico is a great country with enormous potential and capacity to take advantage of the opportunities that arise from the new world order and growing regionalization, leveraging key trends such as innovation and sustainability. We will continue to contribute to the development of Mexico, with the best bank in the country and the work of our foundations », he expressed at the National Meeting of Regional Directors (RNCR 2022) of BBVA Mexico.
In this line, the leader alluded to the investment plan of the entity in the country, of 63,000 million pesos (about 3,000 million euros, at the current exchange rate) between 2019 and 2024. «Until 2021 we have already invested some 1,400 million euros and this year we expect to invest around 620 million euros”, he pointed out.
This visit coincides with the sale process that Citi opened for its Banamex retail banking subsidiary. And in entering that bid BBVA has interests to try to further consolidate its position as the country’s leading bank.
Citi announced a few months ago its intention to dispose of its retail banking in Mexico, operated through Banamex. Then several names came to the fore as possible interested parties, including the main banks in the country: BBVA, Banco Santander and Banorte.
BBVA and Santander (the latter has officially notified its interest) will fight in the Aztec country to take over Banamex. Although everyone has their strategy. The first is limited to confirming and reconfirming its commitment to the territory; the second goes further by giving wings to his intentions, although not at any price and in any way.
However, neither of the two Spanish entities will have an easy time undertaking the purchase without opposition. This opposition also comes from the Mexican president, Andrés Manuel López Obrador (AMLO). Although he maintains a good relationship with both Torres and Ana Botín, the reality is that in recent months he has been busy attacking Spanish companies.
AMLO went so far as to accuse the Spanish companies of having abused Mexico and having “plundered” the territory. He was referring in particular to Iberdrola and Repsol, but the message permeated the entire national productive fabric, which understood it as an attack as a whole.
A short time later, this April, Ana Botín also visited the country and even met with the Mexican leader. He took advantage of his trip to reinforce his interest in being an important player in the territory because the truth is that both Santander and BBVA see in Mexico a very juicy option for the future since the country’s bankarization has only just begun and the possibilities they are enormous… without disdaining the risks of any emerging country.
