Bancomer back in the spotlight

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Bancomer back in the spotlight

BBVA’s Latin America model relies heavily on Bancomer, its Mexican subsidiary. The good news for the Spanish parent is that Bancomer’s finance director expects that Mexico’s rosy outlook should help offset domestic weakness.

"Mexico was out of focus globally for quite a long time," says Javier Malagón Navas, finance director at BBVA Bancomer. "China was the centre of attention and Mexico lost a lot of its manufacturing exports. However, for a number of reasons, Mexico has been discovered again. The economy has been growing faster than before and we expect that to continue. That is reflected in Bancomer’s results."

BBVA Bancomer, the 99%-owned Mexican subsidiary of Spanish bank Banco Bilbao Vizcaya Argentaria, contributes up to 30% to group income and is optimistic about its future because of the fast-growing Mexican economy and the country’s low rate of financial intermediation.

"The new government is also committed to several structural reforms, including in the energy sector and in the labour and fiscal laws. If those measures can be adopted, they should help to shore up growth," says Malagón Navas.

The bank, which was founded by private Mexican investors in 1932 and on most measures is now the biggest in Mexico, reported a net attributable profit of $2.4 billion last year, up 4% year on year at constant exchange rates. It had a net interest income of €4.16 billion last year, 7.8%

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