Banco Sabadell expects to grow 20% in Mexico this year

Banco Sabadell expects to increase portfolio placement and fundraising this year in Mexico by more than 20% after a 2018 period of high growth in digital banking and political changes in the country that have not modified their long-term vision.

Photo: Banco Sabadell blog
Photo: Banco Sabadell blog

The deputy general director of Banco Sabadell in Mexico, Marco Soto, told Efe that for this year the financial institution expects to grow 25% in credit placement and 20% in raising funds.

In this way, this financial entity that since 2016 operates as multiple banks and has a presence in the country since 1991 with a representative office will continue its growth path in Mexico, the second Latin American power behind Brazil.

In total, the institution currently has about 72,000 million pesos (about 3,789 million dollars) in portfolio placed and about 20,000 million pesos (about 1,052 million dollars) in resources raised.

A good part of this boom is due to the acquisition, at the end of December, of 49.27% of the multi-purpose financial company (Sofom) SabCapital, of which it already had 1.73%, until it came to dispose of a 51%, said the company.

The purchase of Sofom placed Sabadell in the ninth position of the banks in Mexico in portfolio size.

To this is added the great success of its commitment to a 100% digital personal banking, which came into operation in January 2018 and has managed to attract thousands of customers.

"We have reached 11,000 new customers, which represent close to 1,000% growth, and 10,000 of these are personal banking," said the executive.

Benefited by the restructuring, Sabadell announced on Wednesday earnings of 303 million pesos (about 16 million dollars).

These factors have led the bank to improve its ratings of the main agencies, such as Standard & Poor's (S&P), and also with prospects for improvement.

In 2019 they will also seek to open a new business center, until reaching the 20 that go from "tip to tip of the country". And also strengthen the team with more people "in places where we already have a presence," he added.

These signs exemplify the great commitment of this financial institution, of Spanish origin, in Mexico.

A long-term vision that goes beyond the political scenario, which in 2018 took a substantial turn with the arrival of the leftist Andrés Manuel López Obrador to the presidency.

"When we knew in the elections who won, we never thought about stopping. We are a bank that comes to be many years, "remarked Soto, who said he had" confidence "in the new government, which will end his term in 2024.

Sabadell estimates that in 2019 Mexico's GDP will grow by 2%.

In line with the forecasts of the Ministry of Finance and Public Credit (SHCP), which forecasts growth between a range between 1.5% and 2.5% this year, as well as inflation of 3.4% and an exchange rate of 20 units per dollar.