González knows the importance of Mexico for his business. That is why he went on a trip to Mexico City, where he was welcomed by president Peña Nieto, and announced its branch BBVA Bancomer will receive 2.7 bn euros until 2016 as part of an investment plan. The money will be used partly to revamp more than 1,700 offices in the country.
That money represents around a third of the profits BBVA is expecting to obtain in Mexico. Some critics are showing their doubts about that investment plan suggesting it could eventually be the first step of a partial sale of the bank.
The investment will actually be used to develop a new model of distribution multichannel, improve the bank’s services, and to develop new products of greater added value for its customers. Some 1 billion euros will go to renovate all branches; other 1.162 million will be allocated to a new technological infrastructure and 542 million will be invested to complete the construction of two operations centers and new headquarters in Mexico City.
BBVA Bancomer leads virtually all market segments in Mexico and analysts positively value its growth prospects, thanks to the low banking penetration in the area (25% of private credit s/GDP, compared to 50% in Brazil and 75% in Chile). Also, outlook macro with growth estimates for 2013 of 3.9% and new business as the SMEs that account for only 5% of the total credit of BBVA in the country and are growing at rates close to 30%.
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